The stock market has opinions on everything, including the skills of a fashion designer. The appointment of Demna Gvasalia, who goes by Demna, to take over as artistic director of Gucci on July 1 sent the shares of Kering, its parent company, tumbling on Friday, March 14. The stock lost more than 10%.
Since the ousting in February of the short-lived Sabato de Sarno, names had been circulating about the rare pearl who would be able to revive Gucci, the French luxury group’s powerhouse. Demna, the current “designer” of Balenciaga, another Kering brand, was not among the favorites. While Gucci has always made a specialty of choosing unexpected creative profiles, the Demna surprise was not to the stock market’s taste.
The choice “can be surprising to investors who expected an external designer and with a higher profile,” said RBC bank analysts in a note. “We recognize Demna’s success at Balenciaga, but we fear that this appointment at Gucci will not be sufficient to meet the expectations of both consumers and investors.’
Having joined Kering in 2015, Demna, 43, is credited with Balenciaga’s turnaround, thanks to his casual, provocative style – huge sneakers and XXL waistbands – that appeals to the young. Or not so young: In 2024, actress Isabelle Huppert walked up the steps of the Cannes Film Festival draped in a white Balenciaga gown that some compared to a bathrobe. It was a sign that celebrities were ready to associate themselves with the brand once again, two years after the controversy that followed the broadcast of an ad of dubious taste featuring children.
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