What happens to a multibillion-dollar luxury brand when the boss leaves

In an era of extraordinary turnover at top fashion houses, brands often lean into their classics — from Gucci’s bamboo-handle bags to Chanel’s tweed suits

Fashion designer Matthieu Blazy walks the runway during the Bottega Veneta Ready to Wear Fall/Winter 2024-2025 fashion show as part of the Milan Fashion Week in February 2024.

I n fashion, creative directors are royalty. Like kings and queens, they’re idolised for their successes and blamed for their failures while always being gossiped about. The all-time greats – such as Karl Lagerfeld, Phoebe Philo and Hedi Slimane – have the power to shape every aspect of a luxury brand, from its collections to its store designs. (Slimane even put his stamp on the branded bottled water served at Celine’s stores.)

But what happens when a creative director leaves (or dies) and their successor has yet to be named? In a period of extraordinary turnover at the top of design houses, many brands have found themselves without a creative leader for months and even years.

Chanel will have shown seven collections between Virginie Viard’s departure in June 2024 and Matthieu Blazy’s first collection for the house this northern hemisphere autumn. Givenchy survived without a creative director designed collection for more than a year until Sarah Burton presented her debut in early March.

Demna, just announced as the next artistic director of Gucci, won’t begin until July. Balenciaga, Fendi and Bally have yet to announce new creative directors after recent departures. This week Loewe appointed Jack McCollough and Lazaro Hernandez from Proenza Schouler as creative leads.

Demna attends the Valentino Haute Couture Spring-Summer 2025 show as part of Paris Fashion Week on January 29, 2025. Picture: Getty Images

During these rudderless in-between times, luxury brands’ collections typically are designed in-house by “the studio”, as a democratic collective or under a designated head of design. Some designers see it as a time to take long lunches; others take the opportunity to hustle. Labels usually lean on tried-and-true hits to buoy sales during this time, like archival bags and shoes. However, that doesn’t always work.

“It typically leads to a hit on the top line,” independent think tank FashionSights’ luxury analyst Achim Berg says.

In a luxury climate defined by an uncertain economy and a declining Chinese market, brands are swapping creative directors in a frantic bid for success. Berg says: “There was typically a reason for the change, which means it wasn’t selling that well in the first place.”

If a creative director isn’t panning out, multibillion-dollar companies tend to have plans in place.

Floriane de Saint Pierre, founder of an advisory and executive search firm for major luxury brands, emphasises that “creative leadership is a key driver of value creation for large, influential brands”. She says boards and chief executives have succession strategies cued up at all times that are re-examined regularly. Despite these contingency plans, brands are often left in flux. But it’s not as bad as it sounds.

Look at the case of Chanel. Recent couture and ready-to-wear shows were well-received by critics and front-row regulars. The autumn collection had moments of wearable creativity, like long black tulle skirts layered over suits. The brand has kept up its momentum on the red carpet, dressing stars including Margaret Qualley and Penelope Cruz for the 2025 Oscars.

After Chanel’s recent show in Paris, the store was as busy as it has ever been in recent years, with gaggles of women gathering around piles of quilted handbags. The true grails at Chanel, from purses and costume jewellery to black tweed suits, have remained constant since the 1920s.

“What we typically see is the momentum that was driven by an outgoing creative director continues and studios in large part continue designing within that same design language,” Nordstrom executive vice-president and general merchandising manager Sam Lobban says. “So it’s still familiar to the customer.”

Fashion designer Phoebe Philo acknowledges the applause of the audience at the end of the Celine show as part of the Paris Fashion Week Womenswear Spring/Summer 2016. Picture: Getty Images

Lobban says the American luxury department store chain does not tend to reduce its spending on designers it carries during in-between seasons. He says most customers are not aware of personnel changes at brands. Savvy shoppers will try to buy pieces from the last collection of a special creative director or the first collection from a new one. But he says people typically buy into the long-term vision of the brand and its quality level, even between creative directors.

Transition periods are opportunities to truck out house signatures. For example, Gucci can lean on its classic bamboo-handle bags and Jackie O era silk scarfs, and Bottega Veneta will highlight tried-and-true products such as its intrecciato woven accessories.

Merchandising departments, which are tasked with liaising between design and sales departments, often muscle in and request reliable styles that have sold in the past. That doesn’t necessarily sit well with designers on staff.

Nina Christen, who worked at Saint Laurent and Celine in the mid-2000s through several transitions, describes it as “basically the worst ground for anything creative to happen”. There are opportunities for go-getters in this period, she says, though “they need enough willpower and authority to impose themselves, which then can also create tensions in the teams and make creative output more difficult”. Christen says she designed some of her best, most personal shoes during the period at Celine between Philo and Slimane, such as a pair of boots with leather pompoms on the toes.

Models walk the runway during the finale of the Chanel Womenswear fall/winter 2025-2026 show as part of Paris Fashion Week at Grand Palais. Picture: Getty Images

While these periods can be stable and even surprisingly fruitful, they cannot go on too long. Lobban cautions that while an outgoing creative director can provide momentum that a brand can ride for some time, longer than a season or two can be damaging.

What’s more, the transition period doesn’t end – pouf! – when the new creative director arrives. Berg says not to underestimate what he calls “the time lapse” of a new arrival.

“It typically takes two or three collections until they’ve managed to really touch the different product categories. And if they are asked to even introduce new categories, it might take even longer.”

It’s not just about clothes. A good creative director sets the tone for the entire marketing of a successful collection, too, from ad campaigns to social media to celebrity partnerships – all of which need to stay fresh and surprising.

Lobban says: “If you’re standing still too long in an overall industry and ecosystem that’s constantly putting out new messages, it becomes noticeable.”

The Wall Street Journal