Kering’s fourth-quarter results revealed a significant hit to profits, largely driven by sluggish sales at Gucci, its flagship brand. Yet, despite the challenging period, investor sentiment remains surprisingly upbeat. Shares in Kering rose following its financial reporting and abrupt departure of Gucci’s creative director Sabato De Sarno, who exited after a brief stint of under two years. The market’s reaction suggests confidence in Kering’s strategic pivot and its potential to steer Gucci back to growth, even if that journey won’t fully materialize until at least 2026.

The unexpected stock rally hints that shareholders believe Kering’s turbulent year—marked by sliding sales at Gucci and restructuring efforts—may have reached its lowest low. The hope is that the group’s annus horribilis is finally behind it. Eyes are now on Gucci’s next creative chapter and the crucial appointment of a new creative director, who will be tasked with reigniting the brand’s momentum.

Speculation is swirling about possible successors. Industry insiders have floated high-profile names such as Hedi Slimane, known for his minimalist, rock-inspired aesthetic at Celine and Saint Laurent, and Maria Grazia Chiuri, the creative force behind Dior’s recent commercial success. While Kering has yet to confirm its direction, it is unlikely that the group will take a risk on an unknown figure. A designer with both creative prowess and business acumen will be essential to restore Gucci’s cultural cachet and financial clout.

Historically, Gucci’s fortunes have been cyclical. Star designers such as Tom Ford and Alessandro Michele left indelible marks, while their successors—Frida Giannini and Sabato De Sarno—struggled to match those successes. Gucci, like many luxury brands, thrives on big creative statements that capture cultural relevance and consumer imagination. In recent years, the brand has leaned heavily on Michele’s maximalist offerings, in addition to its logo-centric and commercial mainstays. But these strategies have shown diminishing returns without the support of fresh creative energy.

High stakes

For Kering, the stakes are high. Gucci accounts for more than a third of the group’s total revenue, making its revival critical to the conglomerate’s broader ambitions. François-Henri Pinault, Kering’s chairman and CEO, is under pressure to ensure the next creative appointment makes a splash—not only with the fashion elite but also with global consumers. A bold new direction could be exactly what the brand needs to recapture its relevance and restore double-digit growth.

“In a difficult year, we accelerated the transformation of several of our Houses . Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilisation, from which we will gradually resume our growth trajectory,” Pinault said in a statement.

The luxury market is notoriously fickle, but history has shown that well-timed reinvention can yield extraordinary results. If Kering makes the right call, Gucci may once again find itself at the forefront of the fashion world—ensuring its annus mirabilis is just around the corner.