Gucci’s got a new captain: Demna, the boundary-pushing designer from Balenciaga, is stepping in as artistic director, Kering revealed Thursday. He’ll take the helm in July, tasked with pulling the Italian luxury icon out of a sales nosedive that’s seen its latest quarter plummet 24%. It’s a high-stakes move after Sabato De Sarno’s exit last month left the brand searching for direction.

Gucci’s Rough Patch

Gucci isn’t the juggernaut it once was. Sure, it still drives nearly half of Kering’s sales and two-thirds of its profits, but the numbers tell a grim story: group revenue hit €17.19 billion last year, down 12%, with Gucci’s fourth-quarter haul dropping to €1.92 billion. That’s part of a slide—20% down in the first half, 25% in the third—that’s rattled Kering. Last July, the stock took a 15% hit, falling from €322 to €275 in a day, as Gucci’s woes dragged the company down. De Sarno’s minimalist reset didn’t click, and now the pressure’s on.

Analyst Luca Solca of Bernstein says Gucci needs a “heavyweight” to reclaim its mojo. Enter Demna.

Demna’s Balenciaga Magic

Since 2015, Demna’s turned Balenciaga into a cultural lightning rod. He brought back haute couture after decades, dressed Kim Kardashian in that unforgettable Met Gala blackout, and mixed street vibes with high fashion. Recent figures peg Kering’s “Other Houses” (Balenciaga included) at €1.7 billion for the first half, down 7%, but his earlier wins made waves. A misstep came in 2022 with an ad campaign tying kids to bondage props—backlash hit hard, and he owned it as a “wrong artistic choice.”

Can He Save Gucci?

Kering CEO François-Henri Pinault calls Demna’s “creative power” the fix Gucci craves. Teaming up with CEO Stefano Cantino, he’s got a shot at lifting a brand stuck at €1.92 billion last quarter. His Gucci-Balenciaga mashup a few years back—logos on classics—hints at what he might cook up. The fashion world’s watching: can Demna pull off another miracle?