Kering Parts Ways With Balenciaga Creative Director Pierpaolo Piccioli

what happened

French luxury group Kering said on Thursday that Pierpaolo Piccioli will leave his role as creative director of Balenciaga, after less than 18 months in the job, according to Dow Jones Newswires. The company said a new creative direction for the house will be named shortly.

Piccioli took over in July of last year from Demna Gvasalia, who moved up to the larger job of heading creative at Gucci, Kering's biggest brand. His exit adds to a run of leadership changes: a month earlier, the company announced that the creative heads of Saint Laurent and Alexander McQueen were leaving.

The group is trying to restore steady revenue growth after another quarterly sales decline, weighed down by ongoing problems at Gucci. Chief executive Luca de Meo, who has led Kering since last year, said the aim is to build on Balenciaga's avant-garde spirit: "Our ambition is... to continue to push creative boundaries, further establishing the house as a powerful and relevant voice."

why it matters

For investors, the key question is whether Kering can reverse its sales slide. Weakness at Gucci, its largest brand, remains the main drag on group revenue, and the string of creative changes suggests management is reshaping its design teams. The effect on financial results will only become clear in upcoming reports.

market impact

Kering: a run of creative leadership changes keeps focus on whether sales can recover, especially at Gucci.

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