Parade of new CEOs to save fashion

From Versace to Alexander McQueen, from Burberry to Ferragamo. The year 2022 starts with new seats “waltz” at the top management of fashion and luxury companies. As a start, Capri Holdings recently announced the appointment of Emmanuel Gintzburger as ceo of Versace. Gintzburger is going to replace Jonathan Akeroyd, who left the fashion house last fall to join Burberry as CEO on April 1. In November, Versace appointed Cedric Wilmotte as a temporary replacement while waiting for a permanent successor. «I am glad to welcome Emmanuel as our new CEO,» John D. Idol, Chairman and CEO of Capri Holdings, stated. The manager is going to join Versace after having been CEO of Alexander McQueen for six years —which recently presented the Fall 2022 collection of its Creative Director Sarah Burton in New York.

Gianfilippo Testa is going to take the helm of the Kering-controlled brand from May 1. Testa joined François-Henri Pinault's giant in 2016 as President Greater China of Gucci, before becoming President of EMEA and VP Global Retail from 2019. 2022 started also with the appointment of Marco Gobbetti, former CEO of Burberry, at Salvatore Ferragamo. The announcement had been made last June. «Such appointments are ‘aftershocks’ following Gobbetti leaving Burberry as well as an ongoing search for the 'right formula' to make small brands work, as they struggle considering the number of fronts on which companies in the industry must fight,» Luca Solca, Senior Research Analyst Global Luxury Goods at Bernstein, explained to MFF. «It will take time,» Flavio Cereda of Jefferies added, «to understand what will change in terms of offer and strategy of these brands».

As for seats “waltz”, Eraldo Poletto has been appointed to lead Diesel in North America. A longtime manager in the fashion industry, Poletto is headed directly by Massimo Piombini, Global CEO of Only The Brave (OTB) Group. In the second half of 2021, there were already new appointments at the top of fashion companies. L Catterton, the fund participated by LVMH which acquired over 60% of Etro, has chosen Fabrizio Cardinali to lead the brand’s relaunch. Cardinali worked at Dolce&Gabbana and previously at Richemont. Last but not least, Patrizio di Marco, former CEO at Gucci, took the helm of End Clothing in October. The British retailer of high-end sportswear and streetwear was acquired by Carlyle for 750 million pounds (about 890 million euros at today's exchange rate) last March.

These new appointments, in turn, mirror the excellent state of health of the industry, despite war fears and new outbreaks of Covid-19 in China. «Luxury companies are isolated from rising rates and they can potentially, with the current selloff, engage in significant value-enhancing mergers and acquisitions (M&A), dividends and buybacks, should opportunities emerge,» Swetha Ramachandran, Investment Manager in GAM’s European equity team and responsible for managing the luxury brands equity strategy, explained. «It is a cyclical industry, despite its defensive growth profile, because profitability is not negatively affected by rising inflation». (All rights reserved)