2024’s biggest fashion challenges

«Ancora» Gucci. The challenge of the double-G brand will be the most observed of the first months of 2024, if not the entire year. With the first collection designed by Sabato de Sarno, the brand, controlled by Kering, is hoping for a rebound that will allow it to cross the 10-billion-euro revenue threshold once more. The fashion house generated 10.5 billion euros in revenue last year, but it fell 5% in the first nine months of 2023 compared to the same period in 2022. Last week, the Campania-born designer gave a sneak peek of his new collection by putting the first pieces on sale in the flagship store in Via Montenapoleone, which reopened after nearly two years of construction. According to financial analysts interviewed by MFF, De Sarno «played it safe» with sober looks. «Despite the fact that the first test was largely positive, we remain cautious about the performances for the time being», Barclays analysts wrote.

They believe that Gucci is already taking most of the necessary steps to improve the company, including elevating the brand, cutting wholesale costs, and changing management. «We believe that Kering should be prepared to invest more in the brand, as we do not think that a margin reset would be poorly received by the market». Furthermore, increasing the level of integration between vertical and in-house production, as Louis Vuitton and other luxury brands do, could boost retail performance while also increasing the flexibility and efficiency of the Florentine fashion house. Experts anticipate 7% organic growth in the fourth quarter, with sales exceeding 10 billion euros once more. The Maison will tackle the task with its new management, which includes the Company’s ceo Jean-François Palus and Francesca Bellettini. If this new set-up can help Gucci reach the 15-billion-euro target announced last year, the challenge for Pharrell Williams, recently reappointed Nicolas Ghesquiére, and Pietro Beccari’s Louis Vuitton is to go beyond the 20 billion reached in 2023, as Beccari himself explained in an interview at the Hong Kong fashion show. «We will continue to grow with Louis Vuitton, even if it means taking risks. Arnault would not have put me in charge if he didn’t want the Maison to keep growing», he added.

According to sources close to the Paris headquarters, Bernard Arnault intends to take Louis Vuitton from its current 20-billion-euro revenue to an all-time high of 30 billion. The Lvmh group does not disclose individual brand figures, but analysts predict that, despite the sector slowdown, the flagship Brand will grow at the same percentage in the leather goods division. As a result, it will grow at a rate of 21%. At this rate, it would take between four and five years. The other major brand that will have to keep up the pace in 2024 is the Prada group. At the MFGS-Milan fashion global summit 2023, ceo Andrea Guerra stated that the company’s goal is to generate 8 billion euros in revenue «with purely organic growth». According to analysts interviewed by MFF , this is an attainable goal. «It could take less than 10 years without M&A», Gam- Galleria d’arte maggiore confirms. Ubs sees increased in-store conversions and leather sales as crucial. The strong brand momentum of Prada and Miu Miu continues. People close to the Fashion House claim that Miuccia Prada, the brand’s Founder, is putting more and more of her energy and heart into the latter. The two designer labels led the group with growth rates of 13% and 49%, respectively. Florence-based Ferragamo is at the center of another relevant challenge. Analysts express caution as they await the turnaround of Marco Gobbetti’s Group. According to Citi and Mediobanca, one of the most important goals right now is to complete the rebranding. The advantages could have an impact on sales as early as 2024. Another challenge involves the Farfetch-controlled Ngg-New Guards Group. Thanks to Korean Coupang, the platform founded by Jose Neves has just found an exit strategy from the financial crisis that has brought it to the brink of bankruptcy. However, it is still unclear what will happen to the Group’s brands, which include Off-White c/o Virgil Abloh, Marcelo Burlon County of Milan, Palm Angels, Heron Preston, Alanui, Opening Ceremony, and Ambush. In short, there will be plenty of challenges in 2024.

New rumors about Alessandro Michele in LVMH. The spotlight is on Pilati and Tisci

Among designers without a full-time position, Alessandro Michele is currently the hottest name. He is the creative genius who, along with manager Marco Bizzarri, tripled Gucci’s sales. The rumors that want him close to Lvmh resurface with each shift at the top. Given that more than a year has passed since his farewell to Gucci, his non-compete agreement with Kering should have just expired, according to apex contract clauses. «Sometimes paths part because of different perspectives», Alessandro Michele commented the day of his announcement. After taking over as Creative Director of Gucci in 2015, he was able to rekindle enthusiasm surrounding the Fashion House. «The path that Gucci and Alessandro have traveled together in recent years is unique and will remain an exceptional moment in the history of the Maison», François-Henri Pinault, ceo of Kering, commented. «His passion, vision, genius, and culture continue to place Gucci at the center of the scene». And, for the time being, this is the case. The man who, along with Manager Marco Bizzarri, led Gucci to annual sales of more than 10 billion euros remains the fashion system’s obsession. Meanwhile, the former ceo’s non-compete agreement is set to expire in mid-April, 2024. And speculation is rife about him as well. «All of the rumors that have circulated so far are false. You must wait until spring», he told MFF when approached on November 23 at a charity dinner for the Ieo-Istituto Europeo di Oncologia-Monzino Foundation. As soon as a top position becomes available, the names of two other well-known designers circulate. Stefano Pilati is the first. The former Yves Saint Laurent and Ermenegildo Zegna Creative Director paraded on the Pont Neuf during Pharrell’s debut at Louis Vuitton and sat in the front row of Kim Jones’ Dior show, right next to the US Creative Director. Is there something in the works for Lvmh? He also appears in the campaign for Shayne Oliver’s new label, A.S.S.O. Could a Fashion House, as with Hedi Slimane and Raf Simons, bet on his expertise? More than a year after leaving Burberry, Riccardo Tisci is making headlines again, this time for his mentorship of Luis De Javier, the young Spanish-born but London-based designer admired by Beyoncé and Cardi B, who was supported by Tisci at the Los Angeles Fashion Week in late October. (All rights reserved)