Gucci's CEO is Stepping Down as its French Parent Shakes up Leadership

FILE - Gucci President Marco Bizzarri, gestures as he attends a conference titled 'The Innovation Summit', in Milan, Italy, on July 3, 2017. Bizzarri is stepping down later this year, the latest shakeup to the luxury fashion brand and coming as part of a series of changes to the French conglomerate Kering that owns it. (AP Photo/Luca Bruno, File)
FILE - Gucci President Marco Bizzarri, gestures as he attends a conference titled 'The Innovation Summit', in Milan, Italy, on July 3, 2017. Bizzarri is stepping down later this year, the latest shakeup to the luxury fashion brand and coming as part of a series of changes to the French conglomerate Kering that owns it. (AP Photo/Luca Bruno, File)
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Gucci's CEO is Stepping Down as its French Parent Shakes up Leadership

FILE - Gucci President Marco Bizzarri, gestures as he attends a conference titled 'The Innovation Summit', in Milan, Italy, on July 3, 2017. Bizzarri is stepping down later this year, the latest shakeup to the luxury fashion brand and coming as part of a series of changes to the French conglomerate Kering that owns it. (AP Photo/Luca Bruno, File)
FILE - Gucci President Marco Bizzarri, gestures as he attends a conference titled 'The Innovation Summit', in Milan, Italy, on July 3, 2017. Bizzarri is stepping down later this year, the latest shakeup to the luxury fashion brand and coming as part of a series of changes to the French conglomerate Kering that owns it. (AP Photo/Luca Bruno, File)

The president and CEO of Gucci is stepping down later this year, the latest shakeup to the luxury fashion brand and coming as part of a series of changes to its parent company, the French conglomerate Kering.

Marco Bizzarri will depart the Italian design house in September after eight years at the helm, with Kering saying Tuesday that he "masterminded the execution of Gucci’s outstanding growth strategy since 2015." He was part of Kering's leadership for 18 years, The Associated Press reported.

Bizzarri will be replaced by Jean-François Palus, who is now Kering's managing director. Palus will be “tasked with strengthening Gucci’s teams and operations” as the brand “rebuilds influence and momentum,” according to the company's statement.

Historically, Gucci accounted for most of Kering’s profits, but it has been under some scrutiny after underperforming rivals.

Kering also said it was promoting Yves Saint Laurent President and CEO Francesca Bellettini as deputy CEO for brand development, managing all of its fashion houses, which also include Balenciaga, Alexander McQueen and Bottega Veneta.

Kering Chief Financial Officer Jean-Marc Duplaix will be another deputy CEO, handling operations and finance.

“We are building a more robust organization to fully capture the growth of the global luxury market," billionaire Kering Chairman and CEO François-Henri Pinault said in a statement.

He said Bellettini drove revenue at Saint Laurent six times higher, while Palus, who's taking over at Gucci, “will now focus his energy on getting our largest asset in top shape.”

Pinault thanked the departing Bizzarri “for his spectacular contribution to the success of Gucci and of Kering.”

The changes open questions about the future of the larger fashion conglomerate and especially of Gucci, whose creative director of eight years, Alessandro Michele, left the brand last November, citing “different perspectives." He redefined Gucci’s codes with romanticism and gender-fluidity.

It marks a clean start at Gucci: Bizzarri arrived when Michele was promoted in 2015 in a complete revamp of the fashion house and now is leaving eight months after the creative director.

Recent Gucci collections have been designed by an in-house team, but the fashion world is awaiting the brand’s first collection by new creative director Sabato De Sarno, formerly part of the team at Valentino, to be unveiled in September.

 

 

 

 

 



Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica's shares fell 21% in premarket trading on Friday, as the maker of high-end leggings warned that tariff-related costs and uneven demand in key markets of North America and China will dent its profits this year.

The Canadian firm, whose Align yoga pants sell for $128 apiece on its website, will raise prices "modestly" for a "small portion of the assortment" and ramp up discounts for the rest of the year, company executives said.

Lululemon has struggled to retain shoppers, despite its efforts to introduce new styles of sports bras and athletic jackets, as it faces intense competition from trendier and more affordable brands in North America and mainland China.

"Despite (Americas) decline, management continues to prioritize product newness and China expansion over addressing a pullback from core customers and evident traffic declines," Jefferies analyst Randal Konik said in a note.

"We believe this misalignment is concerning."

Lululemon joins sportswear rivals Nike and On in raising prices in the US as erratic trade tactics under President Donald Trump rattle global markets and fuel fears of a recession.

Lululemon trimmed its 2025 earnings forecast and said it expects margins to come under pressure from the proposed tariffs, which will impact products from some of its largest sourcing hubs in Vietnam, Cambodia and Sri Lanka.

"My sense is that in the US, consumers remain cautious right now, and they are being very intentional about their buying decisions," CEO Calvin McDonald said on a post-earnings call.

The company's stock, which is down about 14% this year, was trading at $261.90 before the bell on Friday. The news dragged Nike's shares down 1.4%.

Lululemon's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 21.46, compared to that of 31.37 for Nike and 9.54 for Gap.