Kering shakes up underperforming Gucci

On Tuesday, Kering declared the resignation of the longstanding CEO of Gucci, the primary brand of the luxury conglomerate. Gucci has faced challenges while the industry has thrived.

Kering announced that Marco Bizzarri, who has been at the helm of Gucci since 2015, will be resigning from his position in September.

Jean-Francois Palus, the second-in-command at Kering and a trusted associate of the company's CEO and owner Francois-Henri Pinault, will assume temporary control.

Pinault stated in a declaration that our aim is to construct a more resilient institution in order to effectively seize the expansion of the worldwide high-end market.

"Jean-Francois has been my trusted companion and a constant source of challenge and support for many years. Now, he will dedicate his efforts towards optimizing our most valuable resource, and I cannot express how thankful I am," Pinault further remarked.

Kering experienced a nine percent increase in sales last year when compared to previous periods. However, Gucci's sales saw a more modest growth, with only a one percent increase.

In the meantime, the fashion and leather goods department of competing luxury conglomerate LVMH achieved a 20 percent increase in growth during the previous year.

Kering has announced that Palus has been assigned the responsibility of enhancing Gucci's workforce and activities while the brand strives to regain its power and progress. His role also entails preparing the brand's leadership and structure for the upcoming times.

Palus plans to step down from his role on the Kering board and move to Milan, the home of Gucci, as stated in the announcement.

Kering additionally revealed alternative modifications.

Francesca Bellettini, who has been in charge of Kering's other prominent fashion brand, Yves Saint Laurent, since 2013, will also assume the position of deputy CEO at Kering. In this role, she will be responsible for guiding the group's various brands towards additional expansion.