Kering shakes up underperforming Gucci

Kering announced Tuesday the departure of the long-time chief executive of Gucci, the luxury group's main brand which has struggled as the industry has flourished.

Kering said that Marco Bizzarri, who has led Gucci since 2015, will step down in September.

The deputy CEO of Kering, Jean-Francois Palus, a confidant of the company's chief executive and owner Francois-Henri Pinault, will take the reins on a temporary basis.

"We are building a more robust organisation to fully capture the growth of the global luxury market," Pinault said in a statement.

"Jean-Francois has been my right-hand man and a daily sparring partner for several decades, he will now focus his energy on getting our largest asset in top shape, and I couldn’t be more grateful," added Pinault.

Kering last year saw sales rise nine percent on a comparable basis, with Gucci's sales edging up only one percent.

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Meanwhile, the fashion and leather goods division of rival luxury group LVMH posted 20 percent growth last year.

Kering said that Palus "is tasked with strengthening Gucci’s teams and operations as the House rebuilds influence and momentum, and readying its leadership and organisation for the future."

Palus will resign his Kering board position and relocate to Milan, where Gucci is based, the statement added.

Kering also unveiled other changes.

Francesca Bellettini, who has led Kering's other major fashion house, Yves Saint Laurent, since 2013 will also take on the role of deputy CEO at Kering with responsibility for steering the group's houses towards further growth.

Source: AFP