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By
Reuters
Published
Jan 10, 2017
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Balenciaga ex-boss Guichot leaving Kering - sources

By
Reuters
Published
Jan 10, 2017

Outgoing Balenciaga boss Isabelle Guichot, who was expected to remain with parent Kering, has reached an agreement to leave the French luxury and sports group, sources close to the company told Reuters.


Balenciaga - Spring-Summer2017 - Womenswear - Paris - © PixelFormula


Guichot was replaced at the end of November by Cedric Charbit, previously head of merchandising at Yves Saint Laurent, one of Kering's most successful fashion brands.

When her resignation was announced in October, Kering said Guichot would stay within the group. Balenciaga has estimated annual sales of around €400 million ($423 million).

Her departure is the latest in an unprecedented wave of management changes at Kering in the past two years during which the group replaced the management or creative leadership or both at around 75 percent of its 15 luxury companies.

It also coincides with a severe downturn in the luxury goods sector which is forcing big brands to fight harder for market share and sales growth without the artificial boost of price hikes and new boutiques.

"It is clear that when things don't work as expected, you need to speed up management turnover," said Exane BNP Paribas analyst Luca Solca. "All the more so in a difficult market, where we expect groups to have thinner patience with under-performers."
 

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