The House That Stumbled: Inside Gucci's Crisis and the Battle for Its Future.

What happens when an iconic luxury brand loses its narrative? How does leadership—or the lack of it—shape the destiny of a global fashion powerhouse? And what can a luxury house like Gucci learn from the strategic clarity of Italy’s political leadership? In the latest edition of The Future of Luxury by Summit Communication Group , we unravel the story behind Gucci’s current crisis, exploring how the brand’s identity drift, leadership void, and overreliance on fleeting trends have led to an existential reckoning. For CEOs and decision-makers shaping the future of their brands, it’s a thought-provoking analysis of why reinvention without conviction is merely chaos dressed in couture.

Paris, February 6, 2025. The corridors of 开云 ’s headquarters were unusually tense. Sabato De Sarno, Gucci’s creative director, had just been informed that his tenure was over—two years into what was supposed to be a grand revival of Italy’s most storied luxury brand. De Sarno’s departure, abrupt and inevitable, was less the dramatic climax of a fashion saga and more a predictable plot twist in a story that had been unraveling for years. The man once heralded as Gucci's savior was now just another name on an increasingly crowded list of creative casualties.

De Sarno’s final Instagram post was a polite farewell, filled with gratitude: “Any important project relies on the passion, the intelligence and heart of extraordinary people. A thank you would not be enough maybe. But today my joy is for you.” His exit, however, left more questions than answers—most notably: What is Gucci’s future without a clear creative vision?

This wasn’t just the fall of another creative director. It was a symptom of something far deeper—a structural, strategic, and existential crisis within one of the world’s most powerful luxury brands. And as Gucci stares into the abyss, the stakes are higher than ever, not just for Kering, but for the entire luxury industry.

"Any important project relies on the passion, the intelligence and heart of extraordinary people. A thank you would not be enough maybe. But today my joy is for you." Sabato De Sarno, Former Creative Director, Gucci

The Anatomy of a Decline

Gucci’s struggles didn’t begin with De Sarno. They didn’t even begin with Alessandro Michele, whose maximalist baroque flamboyance defined the brand’s aesthetic through the mid-2010s, nor with Frida Giannini’s polished restraint before him. The brand’s trajectory has long been marked by a rhythm of explosive growth followed by equally dramatic contractions, each cycle tethered to the whims of fashion, shifts in consumer behavior, and, increasingly, the pitfalls of corporate overreach. Gucci has always thrived on reinvention, but what happens when reinvention becomes indistinguishable from an identity crisis?

To understand Gucci’s current malaise, one must revisit the brand’s historical DNA. Founded in Florence in 1921 by Guccio Gucci, the house initially catered to the aristocracy, its equestrian-inspired designs evoking a heritage of craftsmanship and Italian elegance. But it wasn’t until the 1990s, under the audacious vision of Tom Ford, that Gucci transcended its leather goods roots to become a global symbol of decadent luxury. Ford’s aesthetic—sensual, provocative, unapologetically bold—did more than sell products; it created desire, the most valuable currency in fashion.

Fast forward to the post-Ford era, and Gucci’s identity became a patchwork of competing visions. Frida Giannini’s tenure leaned on archival revival, with mixed results. Then came Michele, whose baroque maximalism turned Gucci into a cultural juggernaut, beloved by Gen Z and Instagram influencers. Michele’s Gucci wasn’t just fashion; it was theatre, a kaleidoscope of gender fluidity, eccentricity, and retro-futurism. For a while, it worked—spectacularly so. Gucci’s revenues soared, surpassing €10 billion in annual sales by 2019. But fashion’s pendulum swings with cruel precision. By the early 2020s, Michele’s aesthetic had grown stale, a victim of its own ubiquity. What was once avant-garde had become formulaic, overexposed, and ripe for disruption.

Enter Sabato De Sarno, the man tasked with steering Gucci away from its baroque hangover toward a new era of understated sophistication. His appointment signaled 开云 ’s desire to pivot toward the rising trend of “quiet luxury”—a movement epitomized by brands like The Row , Bottega Veneta , and Loro Piana , where craftsmanship whispers rather than shouts. But minimalism is a tricky proposition for a brand whose name is synonymous with excess. De Sarno’s debut collections were technically impeccable, but they lacked the emotional resonance that turns fashion into culture. Gucci’s soul seemed conspicuously absent.

The financials told an even starker story. Gucci accounts for two-thirds of Kering’s operating profit, and when Gucci stumbles, the entire group feels the tremor. In October 2024, 开云 issued a profit warning that sent shockwaves through the industry, forecasting a full-year operating income nearly 46% lower than the previous year, hovering around €2.5 billion. This wasn’t just a stumble; it was a collapse.

Yet perhaps the most damning evidence of Gucci’s decline wasn’t in spreadsheets or earnings calls—it was in the boutiques. Flagship stores in Milan, Paris, and New York stood immaculate yet eerily sterile, their meticulously curated displays betraying the quiet desperation of a brand trying to convince itself of its own relevance. Where once there had been queues of eager shoppers, there were now polite footfalls and the occasional tourist snapping selfies under the iconic double-G logo. The aura had dimmed.

"I sincerely thank Sabato for his loyalty and professionalism. I am proud of the work that has been done to further strengthen Gucci’s fundamentals." Francesca Bellettini, Deputy CEO, Kering

A Crisis of Leadership and Vision

It would be too convenient to lay the blame solely at De Sarno’s feet. The creative director may be the face of a luxury brand, but the true architects of its fate sit in boardrooms, not ateliers. Fran?ois-Henri Pinault, the scion of 开云 ’s empire, now finds himself in the unenviable position of presiding over both Gucci’s current crisis and its uncertain future. Under his stewardship, Kering transformed from a mid-tier luxury player into a formidable rival to 酩悦·轩尼诗-路易·威登集团 . But as any empire-builder knows, expansion breeds complexity, and complexity breeds fragility.

Pinault’s strategy in recent years has been marked by aggressive acquisitions—a 30% stake in Valentino , the purchase of perfumer Creed , and a €1.3 billion real estate investment on Milan’s Via Montenapoleone. These moves were intended to diversify 开云 ’s portfolio and reduce its reliance on Gucci’s volatile fortunes. Yet they also signaled a growing anxiety: what if Gucci, the golden goose, was running out of eggs? 开云 ’s debt, now standing at three times its forecasted EBITDA, contrasts sharply with competitors like 酩悦·轩尼诗-路易·威登集团 and 历峰集团 , both of which maintain leaner, more resilient balance sheets.

Leadership churn has exacerbated the problem. The revolving door of executives and designers has left Gucci without a coherent long-term vision. Stefano Cantino, the brand’s current CEO, faces the daunting task of stabilizing a ship that has been veering off course for years. His public statements are filled with the usual corporate platitudes about “renewed fashion leadership” and “sustainable growth,” but behind the scenes, insiders describe a company paralyzed by indecision and weighed down by its own mythology.

At its core, Gucci’s crisis is a failure of narrative. Luxury brands are built on stories—compelling, coherent, and emotionally resonant. When the story falters, no amount of marketing spend or celebrity endorsements can fill the void. Gucci’s recent campaigns, while visually striking, felt hollow, like echoes of a brand that once knew who it was.

"De Sarno’s designs failed to reignite brand momentum during his short time at Gucci." Carole Madjo, Luxury Analyst, Barclays

The China Dependency and the Global Misstep

Compounding Gucci’s woes is its precarious overreliance on the Chinese market. For much of the past decade, China was the engine of luxury growth, its burgeoning middle class hungry for Western brands that symbolized status and sophistication. Gucci rode that wave to spectacular heights, but waves, by their nature, crash.

In 2024, sales in the Asia-Pacific region fell 9%, dragged down by a 7% decline in mainland China. The reasons were manifold: economic slowdowns, regulatory crackdowns on conspicuous consumption, and a post-pandemic shift in consumer priorities. While competitors like Hermès adapted with hyper-localized strategies and experiential marketing, Gucci doubled down on its existing model, leaving itself dangerously exposed when the market cooled.

Moreover, Gucci’s attempts to diversify beyond China have been half-hearted. Its North American growth strategy has been inconsistent, and its digital transformation has lagged behind rivals who embraced e-commerce and virtual experiences with gusto. In an era where luxury consumers expect both exclusivity and accessibility, Gucci often seemed caught in an identity limbo—unsure whether to be a temple of heritage or a playground for the avant-garde.

"Never underestimate the power of the Chinese consumer and their resilience and the long-term trajectory of the market." Joshua Schulman, CEO, Burberry

Lessons from Across the Channel

If there’s a lesson to be learned, Gucci need only look across the Channel to Burberry . Under the leadership of Joshua Schulman, Burberry has orchestrated one of the most impressive turnarounds in recent luxury history. Faced with similar challenges—declining sales, brand confusion, and overextension—Schulman executed a strategy that was both bold and disciplined.

"We recognize that it is still very early in our transformation and there remains much to do." Joshua Schulman, CEO, Burberry

Rather than chasing fleeting trends, Schulman doubled down on Burberry ’s core identity: British outerwear. He recalibrated pricing strategies to reflect the brand’s value without alienating its customer base, and he implemented a ￡40 million cost-cutting plan that restored fiscal discipline without compromising creative integrity.

The result? Burberry ’s shares surged 15% following stronger-than-expected festive sales, and the brand reclaimed its status as a symbol of British luxury. The contrast with Gucci couldn’t be starker. Where Burberry embraced clarity, Gucci clung to confusion. Where Schulman made decisive moves, 开云 hesitated.

Reinvention or Relic?

So, what now for Gucci? The brand stands at a crossroads, its path forward obscured by the very history that once propelled it. Reinvention is not optional; it is imperative. But reinvention without direction is merely chaos dressed in couture.

Gucci must first reclaim its narrative. This isn’t about nostalgia or empty homages to its past. It’s about distilling the essence of what made Gucci matter—its fearless audacity, its subversive elegance—and reimagining that for a new era. The next creative director must be more than a designer; they must be a cultural architect, capable of shaping not just collections, but conversations.

"It would be wrong to bet against the brand reinventing itself again." Lex Opinion Column, Financial Times

Operationally, Gucci needs to confront its overreliance on specific markets, diversify its revenue streams, and embrace the digital frontier with the same fervor that once defined its approach to physical retail. It must also address the internal dissonance within 开云 , where corporate ambitions often seem at odds with creative realities.

But perhaps the most difficult challenge is philosophical. Gucci must decide what kind of luxury brand it wants to be in a world where the very definition of luxury is changing. Is it a relic of old-world opulence, or a beacon of modern sophistication? The answer to that question will determine whether Gucci’s next chapter is a renaissance—or an epitaph.

The grandeur of Palazzo Chigi, with its stately halls steeped in centuries of political machinations, feels worlds apart from the polished marble and mirrored interiors of Guccis flagship boutiques. Yet, within these contrasting realms lies a striking parallel: both are institutions synonymous with Italian identity, grappling with the demands of reinvention amid shifting global landscapes. One has navigated these waters with remarkable deftness—Italy’s Prime Minister, Giorgia Meloni. The other—Gucci—stumbles, searching for coherence in its brand narrative.

Meloni’s political ascent is more than a testament to personal resilience; it’s a masterclass in strategic leadership, cultural resonance, and unapologetic authenticity. Under her stewardship, Italy has emerged from the shadows of economic stagnation and political fragmentation, asserting itself as a formidable force within the European Union . She didn’t achieve this through timid consensus or half-hearted gestures. She succeeded by crafting a clear, unyielding vision, rooted in national pride and pragmatic governance.

Now, imagine if Gucci—mired in creative uncertainty, strategic inertia, and commercial decline—adopted a similar approach. What if the House of Gucci learned not from another luxury brand, but from the leadership playbook of Italy’s most formidable political figure?

What if the brand declared, with conviction, “This is who we are. Take it or leave it.” Luxury isn’t about mass appeal; it’s about magnetism—drawing people in through the gravity of a strong, unapologetic identity.

The luxury world is watching.

Written by Gregory Gray , CEO & Founder of Summit Communication Group

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