a Gvasalia, Balenciaga’s creative director since 2015, as its new creative director following the departure of Sabato De Sarno. The sudden decision raised concerns among investors, leaving uncertainty about the brand’s future direction. Following the announcement, Kering’s share price dropped 13 per cent, losing around $3 billion in stock market value on Friday.  “It feels like a hire made through a process of elimination, as Gucci lacked a deep pool of top-tier creative directors to choose from. The role is enormous, with expectations that are almost unachievable, making it essential to appoint an established name,” Mathew Dixon, partner at DHR Global, told Inside Retail. “But who was available? Hedi Slimane, Kim Jones, and John Galliano didn’t align with Kering’s vision, and with Gucci in a rush, poaching a designer from another maison wasn’t an option as non-compete clauses would have delayed their start until autumn. So, Kering turned to Demna, someone they know and trust.” Demna, who has been the artistic director at Kering’s Balenciaga since 2015, is credited with redefining the luxury house’s aesthetic by incorporating streetwear and disruptive, avant-garde design into its portfolio. His influence helped Balenciaga become one of the most culturally relevant brands of the past decade. However, his tenure has not been without controversy. In 2022, Balenciaga faced backlash over ad campaigns featuring children holding teddy bear handbags with bondage-style straps, as well as documents referencing a Supreme Court ruling on child pornography. The scandal led to widespread criticism, and Demna later admitted the campaign was a “wrong artistic choice.” “Demna is a divisive figure, but there’s no denying his impact. He transformed Balenciaga’s revenues and redefined its aesthetic. Much like Alessandro Michele at Gucci, he rebuilt the house in his own image, evolving his Vetements-born aesthetic into a global luxury phenomenon,” Dixon said.  “The real question is: How does he translate his vision into Gucci? If it’s merely an extension of his Balenciaga work, the brand risks becoming one-dimensional. This move is also a necessary one for Demna himself. After nearly a decade at Balenciaga (arguably two to three years too long), his once-radical aesthetic was becoming a pastiche of itself. A fresh start at Gucci could creatively reinvigorate him, but only if he’s willing to evolve.”  Gucci’s revenue plummeted to €7.7 billion last year, representing a 23 per cent decline on a reported basis, and a 21 per cent drop on a comparable basis. The brand posted revenue down 24 per cent for the fourth quarter. Gucci’s troubles can be traced to a combination of creative stagnation, shifting consumer trends and macroeconomic headwinds, particularly in China. The latest development in Gucci’s leadership turmoil came with the departure of creative director Sabato De Sarno, who lasted just two years in the role. “This is an all-in move by Kering. Whatever happens now, they cannot afford to change their minds or lose their nerve. If the fashion press and consumers don’t respond positively, expect Kering to double down on Demna. They simply cannot afford another U-turn like they did with De Sarno. Instead, they will ride out the bumps, commit to the vision and trust the process.” Jonathan Anderson’s departure from Loewe Gucci’s appointment is part of a broader reshuffling of creative leadership in the luxury industry. Just days after Gucci named its new creative director, Loewe announced the departure of Jonathan Anderson, marking the end of his 11-year tenure at the LVMH-owned fashion house. The 40-year-old designer played a pivotal role in transforming Loewe into one of the most influential luxury brands of the past decade. Speculation about Anderson’s exit had been circulating for months, making the official confirmation less of a surprise. Loewe CEO Pascale Lepoivre acknowledged his lasting impact, stating that under his creative direction, the brand had reached new heights of international recognition. Anderson is widely expected to move to Dior, where he is rumored to take over both women’s and men’s collections. If confirmed, he would be the first designer in decades to oversee both divisions of the house. Meanwhile, Loewe has yet to announce his successor. “Beyond Loewe, Anderson continues to redefine modern design through his eponymous label, JW Anderson,” said Fabio Becheri, a marketing executive and brand adviser who spent 20 years at Gucci. “His long-running collaboration with Uniqlo has made beautifully designed, accessible fashion available to a wider audience.”  The wave of creative shifts extends beyond Loewe and Gucci. Last week, Donatella Versace stepped down as chief creative officer of Versace after nearly 30 years. She will transition into the role of chief brand ambassador, while Dario Vitale, former design and image director of Miu Miu, has been appointed as Versace’s new creative lead.