Luxury industry faces leadership churn and creative shifts as slowdown deepens

Economic slowdown, geopolitical tensions, market volatility, and the 15% tariffs on exports to the United States… The poor economic climate is taking its toll on the luxury goods market, as illustrated by the half-year results of numerous houses. After a rocky summer filled with leadership announcements and executive shakeups, the industry enters autumn with uncertainty, placing its bets on a fresh wave of creative directors.

According to a Bain & Company report presented in Milan in June, in collaboration with the Italian high-end goods association Altagamma, the luxury goods market is experiencing its most significant slowdown in 15 years (excluding the COVID-19 period). In the first six months of 2024, major luxury players reported mixed results, including steep drops among former champions. LVMH saw net profit fall by 22% to €5.7 billion, while revenue declined by 4% to €39.8 billion.

Loro Piana, under the LVMH umbrella, was placed under court administration by the Milan court in July after being reprimanded for outsourcing to subcontractors with poor working conditions—further tarnishing the image of an already struggling luxury sector.

Still reeling from Gucci‘s ongoing decline, Kering reported a 46% decline in net profit to €474 million and a 16% drop in sales to €7.6 billion. Lanvin Group also reported a 22% decline in sales to €133 million and a 26.8% drop in gross profit to €71.9 million.

Salvatore Ferragamo fell by 9.4% to €474 million, recording a net loss of €57 million. The Zegna Group reported sales of €927.7 million, a 3.4% decrease. While Moncler’s revenue remained relatively stable at €1.2 billion (+1% at constant currency), its net income dropped 15% to €153.5 million.

Among the positive performers, Hermès led with a 7.1% increase in sales to €8 billion, although net income slipped 5% to €2.2 billion. Prada achieved 9% growth to €2.74 billion, with a net income of €386 million (compared to €383 million a year earlier). Brunello Cucinelli saw revenue grow by 10.7% (at constant exchange rates) to €684 million and net profit rise by 16% to €76.7 million. Meanwhile, Spanish group Puig posted €2.299 billion in revenue, up 7.6% on a comparable basis (+5.9% reported).

In light of these uneven results, the luxury industry is in full-on leadership reshuffle mode. The most high-profile change came from Kering, where automotive executive Luca de Meo will take over as CEO on September 15, charged with reviving Gucci and restoring growth to François-Henri Pinault’s group. Within the group, Cédric Charbit has moved to lead Saint Laurent, leaving his previous role at Balenciaga to Gianfranco Gianangeli, who, as incoming deputy CEO, Nathalie Raynaud will support. Federico Arrigoni has taken over as CEO of Brioni, replacing Mehdi Benabadji.

LVMH has also been busy reshuffling leadership. Michael Burke has been named President and CEO of LVMH Americas. Pierre-Emmanuel Angeloglou is now CEO of Dior, while Damien Bertrand has been appointed Deputy CEO of Louis Vuitton. Bulgari‘s head, Jean-Christophe Babin, now leads LVMH’s watch division. Frédéric Arnault has taken the reins at Loro Piana, Ramon Ros has been appointed to manage Fendi, and Charlotte Coupé now oversees Kenzo.

The luxury group has also made structural changes. Ludovic Pauchard now leads the new industrial and craftsmanship division and serves as Executive Chairman of Métiers d’Art. Strategy Director Jean-Baptiste Voisin will oversee the “brand, retail & strategy” division and supervise the LVMH Média Recherche Image teams. Meanwhile, Stéphanie Medioni is slated to become Chief Brand Officer in 2026, succeeding Mathilde Delhoume.

Further changes include Riccardo Bellini replacing Jacopo Venturini as General Manager of Valentino, and Sam Lobban taking over as CEO of Thom Browne from Rodrigo Bazan. At Lacoste, Eric Vallat replaces Thierry Guibert. Christian Lacroix CEO Nicolas Topiol stepped down in July, handing control to brand owner Sociedad Textil Lonia (STL), while Serge Brunschwig departed Jil Sander (OTB) after just six months, having previously served as CEO of Fendi.

Alongside these executive changes, the luxury world is undergoing a dramatic creative overhaul, with new artistic directors assuming leadership roles at major fashion houses. This wave of talent is expected to take center stage during the upcoming fashion weeks, setting the tone for the industry’s next creative chapter.

At Milan Fashion Week, all eyes will be on Gucci, where Demna (Gvasalia) will present his first collection on Tuesday, September 23. The next day, Simone Bellotti will debut at Jil Sander. Versace’s new designer, Dario Vitale, is expected to showcase early looks at a closed-door event on September 26, while Louise Trotter will present her first collection for Bottega Veneta on Saturday, September 27.

Paris Fashion Week will see no fewer than nine major debuts. Highlights include Jonathan Anderson’s first women’s collection for Christian Dior on October 1, and Matthieu Blazy’s debut at Chanel on October 6. Other newcomers include Mark Howard Thomas at Carven, Michael Rider at Celine (who teased his pre-collection in July), Lazaro Hernandez and Jack McCollough at Loewe, Duran Lantink at Jean Paul Gaultier, Glenn Martens at Maison Margiela (after a couture debut in July), Miguel Castro Freitas at Mugler, and Pier Paolo Piccioli at Balenciaga.

Looking ahead, the next creative shifts are already in motion. Proenza Schouler has tapped Rachel Scott from Diotima, while Marni has named Belgian designer Meryll Rogge, winner of the Andam Grand Prix, as its new artistic director following the departure of Francesco Risso.