Kering has chosen Demna (Gvasalia),
the Georgian designer who has changed the face of Balenciaga in
10 years, to relaunch Gucci but the stock market has not taken
it well.
Kering stock has fallen by 11.28% to 222.1 euros with the market
taken by surprise.
"His bold and sometimes controversial aesthetic is a risk as
well as an opportunity" comments Barclays but the sentiment is
common among managers and investment banks.
"Gucci is now completely changing gear - Barclays analysts
comment - but the brand's aesthetic could be seen as too
provocative and may not resonate with Gucci consumers".
Certainly "it is a courageous choice for Gucci: Demna is a
talented designer, he has had great commercial success in the
ten years spent at Balenciaga (+25% average growth per year) and
has all the credentials to reignite the creative energy of Gucci
- comments Mediobanca.
At the same time, it could be seen as a riskier and more
unconventional choice. We lean towards the positive side, as we
believe that the management team will merge Demna's powerful
creativity with Gucci's DNA".
The episode that everyone remembers dates back to 2022, the
'Gift shop' advertising campaign that created a scandal and
triggered a collapse in sales, then exacerbated by the slowdown
of the sector in 2023-24.
"The appointment of Demna aims to bring into Gucci a designer
with strong creative ability and particularly influential, who
can restore energy and relevance to the brand in the fashion
world - underlines Equita.
"We believe that in the meantime the 2022 accident has led the
group to equip itself with more adequate control procedures,
limiting further similar reputational risks for the future".
"Furthermore, the entry into Gucci (8 billion in turnover
against Balenciaga's 2) "will represent a big step forward for
the designer, who will be subjected to much more careful
scrutiny, given that Gucci is naturally the main target of
investors" and analysts in their opinion continue "to remain
cautious on Kering".
"Investors expected a more high-profile external designer, which
this appointment does not seem to provide" comments the analyst
from Rbc Capital Markets with the "fear that this appointment to
Gucci is not enough to support what is necessary in terms of a
signal to consumers and investors".
For Jefferies, beyond the surprise "it is not clear whether his
imprint on the brand will already be at the Gucci fashion show
in Milan in September or if we will have to wait until 2026".
ALL RIGHTS RESERVED © Copyright ANSA
