Visitors walk past a Gucci store at Marina Bay Sands in Singapore
Visitors walk past a Gucci store at Marina Bay Sands in Singapore January 19, 2023. Reuters

Sabato De Sarno, newly appointed by Kering to reinvigorate its prized Gucci brand, needs to spark heat with a new direction, analysts say - a delicate task, given the emphasis executives have also put on the label's timeless appeal.

De Sarno, a senior fashion designer from Valentino, is tasked as creative director with reviving the fortunes of the brand that accounted for two-thirds of Kering's profits in 2021.

An emphasis on classics was a priority outlined by executives at the company's investor presentation last year, and Gucci has recently revived its bamboo-handle model handbag from 1947, as well as its over-the-shoulder Jackie bag from 1961.

But analysts say De Sarno will also have to generate buzz with hot new styles - a strategy that has traditionally served the brand well, compared to the path taken by some rivals that focus more strongly on signature classics, especially handbags.

"The future of Gucci is not to become another (Louis) Vuitton, Chanel or Hermes, but to nurture its fashion content to drive customers back to the brand," said Antoine Belge, analyst with Exane BNP Paribas.

The group had been under pressure to quickly appoint someone to the top creative job at Gucci following the abrupt departure in November of Alessandro Michele.

The flamboyant designer, who was a favourite of Harry Styles and Lady Gaga, had overseen a period of soaring growth in 2015-19, with eccentric, gender-fluid designs.

However in recent quarters Gucci has lagged rivals including Hermes and LVMH's top brand Louis Vuitton, with its performance in the key Chinese market becoming a source of concern for investors amid COVID-19 lockdowns.

For Bernstein analyst Luca Solca, Gucci needs to make a strong statement to return to the center stage. "Gucci has to be over the top in order to thrive," said Solca.

Analysts welcomed Kering's choice of a seasoned but relatively unknown designer, noting that previous creative director Michele did not have a public profile when he was appointed in 2002.

"Another bold choice that may work well again," said Jefferies analyst Flavio Cereda, though he cautioned that the director's task was not "straightforward this time".

Among challenges cited by Cereda is potential turmoil as Gucci brings on an outsider while the previous designer's teams are still in place, and the time it will take for the market to understand a new direction from the label.

De Sarno will show his first Gucci collection in September in Milan. His experience at Valentino suggests a "less eccentric aesthetic" than Gucci's previous designer, noted Carole Madjo of Barclays.

The designer rose through Valentino's ranks after his arrival in 2009 to become fashion director overseeing both the men's and women's collections, working closely with chief designer Pierpaolo Piccioli.

The announcement of his appointment came ahead of Kering's Feb. 15 earnings release, which will likely show the label's fourth-quarter sales saw one of the more pronounced slowdowns among the world's top fashion labels due to coronavirus disruptions in China.

Kering's share price was mostly flat on Monday, down 0.1% at 1333 GMT.

A Gucci logo is seen outside a shop in Paris
A Gucci sign is seen outside a shop in Paris, France, January 27, 2023. Reuters
Kering appoints Sabato De Sarno as Gucci creative director
Sabato De Sarno, newly appointed by French luxury goods group Kering as the creative director of its brand Gucci, is seen in this undated handout image released on January 28, 2023. Riccardo Raspa/Kering/Handout via REUTERS Reuters