(News Bulletin 247) – The luxury group announced several changes in its management on Tuesday evening, including the departure of the CEO of Gucci and the appointment of two deputy general managers. The Stock Exchange appreciates these decisions, judging that they will help the company regain momentum.

Kering changes the staff of its nugget. The luxury group and parent company of Gucci made a series of changes on Tuesday to “strengthen” the management of its houses. Perhaps the most emblematic announcement is that of the departure, effective September 23, of Marco Bizzarri, CEO of Gucci since 2015, who has largely contributed to the formidable growth of the Italian brand.

>> Access our exclusive graphic analyses, and enter into the confidence of the Trading Portfolio

Gucci in creative transition

But more recently the transalpine label (which represents half of Kering’s sales and nearly two-thirds of its operating profit) has experienced a downturn and found itself in a difficult period of creative transition. Last year, Gucci’s revenues grew by only 1% like-for-like, and Kering’s by 9%, growth that is light years ahead of that of other major luxury players, such as Hermès (+23.4 % in 2022) and LVMH (+17%).

At the start of the year, the house appointed a new artistic director, Sabato de Sadarno, a defector from Valentino, to breathe new life into Gucci with a first collection expected during Milan fashion week. Kering CEO François Henri-Pinault expressed in February the need to “elevate” the brand, which means making it more timeless.

To temporarily succeed Marco Bizzarri, the group has entrusted the position of CEO of Gucci to Jean-François Palus, Deputy CEO of Kering. “His mission, as the House regains influence and momentum, is to strengthen Gucci’s teams and operations, and prepare its leadership teams and organization for the future,” the company said.

In addition to this departure, Kering has announced the appointment of two deputy general managers. Francesca Bellettini, CEO of Yves Saint Laurent, thus becomes DGA of Kering in charge of the development of the houses. “The CEOs (general managers, editor’s note) of all the brands will report to her, and she will be responsible for steering all of the group’s houses in the next stages of their development,” the company said.

For his part, Jean-Marc Duplaix, the financial director of Kering since 2012, sees his costume widen, the leader becoming CEO of Kering in charge of operations and finance. He will thus manage all the “corporate” functions of the company.

A reorganization that makes “a lot of sense”

Thus Francesca Bellettini and Jean-Marc Duplaix assert themselves as the two great leaders of the company alongside François-Henri Pinault.

On the Paris Stock Exchange, the market is delighted, the Kering share taking 5.7% to 521.9 euros around 9:30 a.m., signing by far the largest increase in the CAC 40.

In notes released before the market opened, both Royal Bank of Canada (RBC) and Invest Securities welcomed the changes in management, saying they should be well received by investors.

RBC considers the departure of the CEO of Gucci not a “big surprise” and considers that it marks “an important step in instilling new leadership (albeit transitional) and a new perspective at Gucci”.

On the same subject, Invest Securities appreciates that Marco Bizzarri is temporarily replaced by Jean-François Palus. “While Gucci’s recovery (the recovery of the dynamic, editor’s note) is slow to materialize, the takeover of the group’s flagship brand by the right arm of François-Henri Pinault should be well perceived this morning”, underlines the study office.

“A lot of meaning in our eyes”

RBC also welcomes the appointments of Jean-Marc Duplaix and Francesca Bellettini. This structure with two DGAs “makes a lot of sense to us”, “the first being a sure hand who has made an invaluable contribution to the group in recent years, and the second having proven itself in the development of the brand”, explains Canadian bank.

Francesca Belletini’s new role “should allow better knowledge sharing and better supervision of Kering’s entire portfolio” while her balance sheet at Yves Saint Laurent is good, RBC continues. Since taking orders for the brand, sales have increased sixfold.

“We are also encouraged that Jean-Marc Duplaix is ​​officially taking on broader responsibilities within the group as CEO of Kering, given his invaluable contribution and overall oversight of the group over the past few years,” also argues RBC.

Kering will publish its half-year results on July 27 after market close.