Recent news about Gucci in 2025 shows the brand facing significant challenges but also undergoing strategic changes for recovery:
- Gucci sales dropped sharply by about 23-25% in 2024 and continuing struggles in 2025, with operating income falling as well. The brand has been suffering from low store traffic and weakening consumer demand, including in key markets like China.
- The parent company Kering remains confident about Gucci's future. Kering's CEO François-Henri Pinault affirmed the brand will make a comeback, emphasizing a strategy to reconnect with Gucci’s heritage and desirability while also targeting more elevated clientele.
- Gucci recently parted ways with its creative director of two years, signaling a shift. A new artistic director is expected to mark the next phase of Gucci's evolution. The upcoming collection by new creative director Demna, debuting in September 2025 at Milan Fashion Week, is closely watched as a potential turning point for the brand.
- Kering is executing cost-cutting measures including closing up to 80 Gucci stores by the end of 2025, reducing non-owned retail outlets, and focusing more on full-price stores and tightening distribution.
- Gucci has also re-energized its marketing and communication efforts, including new store window concepts to better engage customers and emphasize both products and brand values.
- The luxury market is seeing a shift from "loud luxury" (large logos, flashy branding) toward more subtle, quiet luxury styles, which Gucci may need to adapt to in order to regain relevance, especially with younger consumers such as Gen Z and Millennials. This aligns with broader industry trends around innovation and environmental consciousness.
- There is also internal tension as Gucci employees in Italy have threatened strike action over a welfare payment dispute, indicating labor challenges amid the brand’s turnaround efforts.
- Kering’s overall financial health has been impacted by Gucci’s performance, with credit outlooks downgraded due to weak sales.
In summary, Gucci is currently in a challenging phase marked by declining sales and strategic restructuring under new leadership to regain market relevance and financial stability. The brand’s upcoming creative direction and operational reforms will be crucial to watch as they try to reverse their fortunes later in 2025. If you want more specific updates on product launches or marketing campaigns, please let me know.