Kering elevates ex-Louis Vuitton director to top role at Gucci

Cantino, 57, joined Gucci in May as deputy CEO and will take up the new role on January 1, Kering said on Tuesday. He replaces Jean-François Palus, who was appointed on a temporary basis last year.

The fashion industry veteran takes over at a time of weakness for the struggling Italian brand, which has suffered from declining demand for high-end goods, especially in China, after its pandemic-era boom.

Shares of Kering rose nearly 1% in early trading on Wednesday. The stock is down more than 40% this year.

Cantino previously spent five years at Louis Vuitton, LVMH’s largest brand, where he oversaw communications and image. Before that, he worked for Prada SpA for twenty years, where he rose to director of communications and marketing. He will report to Kering co-deputy CEO Francesca Bellettini.

Gucci, which accounts for about two-thirds of Kering’s operating profit, last year appointed a new creative director, Sabato De Sarno, to revive the legendary fashion brand.

His collections have brought a more minimalist aesthetic to the label known for its flamboyance under his predecessor, Alessandro Michele. Although De Sabato has been at Gucci for less than two years, Cantino’s appointment could raise questions about his tenure as fashion CEOs often look for a designer of choice to translate their vision.

Palus, a longtime lieutenant of Kering CEO Francois-Henri Pinault, was brought in to oversee Gucci after Marco Bizzarri’s departure a year ago.

Cantino’s appointment is positive for Gucci as the luxury label needs external experience with a “more radical” approach to tackle its challenges, said Piral Dadhania, analyst at RBC Capital Markets. However, he added that Cantino “has a lot of work to do” and wondered whether new products from De Sarno are gaining popularity.

The group, which also owns Yves Saint Laurent and Balenciaga, reports third-quarter revenue on October 23.