The role of a luxury brand’s creative director has started to resemble that of a star athlete—highly paid but often short-lived. This shift raises concerns about the stability of the fashion industry.
In recent years, fashion houses have rapidly replaced their top designers. Just this month, Gucci announced a change in leadership. According to Bank of America, 13 major brands—including Celine, Chanel, Bottega Veneta, Valentino, Tom Ford, and Fendi—have all seen creative shakeups.
Why Luxury Brands Keep Changing Creative Directors
The industry’s struggle with declining demand has fueled these changes. Between 2022 and 2024, global luxury sales dropped by over 20%, according to consulting firm Bain & Co. While brands have increased prices to maintain revenue, this strategy has its limits. As a result, luxury labels have lost around 50 million customers, mainly middle-income shoppers who can no longer afford high-end goods.
With fewer buyers, brands need fresh ideas to reignite interest. Hiring the right designer can dramatically shift a company’s fortunes. Hedi Slimane, for example, doubled sales at Saint Laurent and Celine. Alessandro Michele, who led Gucci before Sabato De Sarno, boosted revenue by over $5 billion during his tenure. Under his leadership, Gucci’s parent company, Kering, saw its stock price quadruple in just five years.
The High Stakes of Creative Leadership
Luxury brands pay top dollar for the best talent. Creative directors at major fashion houses, such as Louis Vuitton, can earn more than $10 million per year, plus bonuses tied to performance. However, even top designers struggle to maintain long-term success.
Historically, brands gave their creative leaders at least five years to establish their vision. Now, many receive only three-year contracts with renewal options. Some designers don’t even last that long. Gucci’s Sabato De Sarno left after just two years, while Tom Ford’s Peter Hawkings stepped down in less than a year.
Companies now react faster if a designer’s changes don’t immediately boost sales. As luxury brands grow, the financial risks of a failed rebranding increase. This pressure has led to a revolving door of creative talent, making it difficult for designers to build a strong identity for a brand.
The Cost of Frequent Creative Changes
Constantly switching designers can confuse customers. Cult brands like The Row or Phoebe Philo’s Celine took years to develop a distinct aesthetic, proving that successful brand-building requires time.
The financial impact of frequent changes is also significant. When a new creative director takes over, it can take up to 18 months before their designs hit store shelves. Meanwhile, old collections must be discounted to make room for new styles, cutting into profits. Gucci, for instance, saw its operating margin drop from 36% to 21% over the past two years—largely due to declining sales and the costs of transitioning between creative leaders.
Different Approaches to Managing Change
Luxury brands that rely on star designers, such as Gucci and Burberry, often experience extreme highs and lows. When a designer’s vision resonates, sales soar. But when trends shift, brands face rapid declines.
More conservative companies, like Hermès, take a different approach. Instead of depending on a single star designer, they use a team-based strategy that ensures smoother transitions. High-end jewelry brands, including Cartier, follow a similar model, making leadership changes less disruptive.
Moncler, an Italian outerwear brand, has taken another approach. Instead of relying on one designer, it collaborates with multiple artists through its Genius Project, offering limited-edition releases. Although this line contributes only 10% of Moncler’s total sales, it keeps the brand exciting and relevant without depending on a single creative visionary.
The Pressure on Designers
As the luxury industry prioritizes shareholder returns, designers often take the blame for slow sales—even when other factors, such as supply chain issues or ineffective marketing, are responsible.
“The creative director is usually the first to go,” says Claudia D’Arpizio, a senior partner at Bain & Co. Designers now face shorter contracts and higher expectations. If they fail to deliver immediate results, they may struggle to find another opportunity at a top brand.
Balancing Creativity and Business
The luxury industry has lost some of its excitement, and investors are pushing brands to deliver better results. While new creative directors can bring fresh perspectives, brands need to allow them enough time to implement meaningful change.
Patience and long-term planning are essential for building strong, lasting brands. Instead of rushing to replace designers, fashion houses should focus on fostering sustainable growth, ensuring both creative and financial success.