Kering is accelerating its restructuring efforts with the departure of Alexander McQueen creative director Sean McGirr, marking another major leadership change as the luxury group works to revive sales and improve profitability across its brands.
The Paris-based conglomerate announced McGirr’s exit on Thursday, ending the Irish designer’s three-year tenure at the British fashion house. The decision comes amid declining sales, underwhelming critical reception and a broader effort by Kering chief executive Luca de Meo to reshape the group’s portfolio.
“I would like to thank Sean for his contribution and dedication to Alexander McQueen,” de Meo said in a statement. “Our ambition is to establish a bold new direction for the house.”
Sales Decline Puts Pressure on Kering’s Fashion Houses
McGirr’s departure comes as Kering faces mounting financial pressure across its luxury portfolio, which includes Gucci, Balenciaga, Bottega Veneta and Saint Laurent. De Meo, who joined the group last September after helping turn around French automaker Renault, has earned a reputation for cost-cutting and business restructuring.
Investors initially welcomed his appointment, hoping he could reduce Kering’s debt and restore growth. However, the group’s shares have fallen 28% since the beginning of the year, despite signs of improvement at Gucci under creative director Demna.
The wider luxury industry is also struggling with weaker global demand, particularly in China, alongside concerns about the broader economic outlook. Kering’s rival LVMH reported a 5% decline in third-quarter sales at its fashion and leather goods division.
De Meo reportedly considered selling Alexander McQueen after taking the chief executive role but ultimately pursued cost reductions through job cuts and store closures.
According to Bernstein luxury analyst Luca Solca, the brand’s reliance on streetwear and sneakers as growth drivers has become a disadvantage as consumer preferences shift. Solca also noted that McGirr had struggled to make a positive impact during his tenure.
Annual sales at Alexander McQueen, founded by the late British designer, have fallen below an estimated €200 million, down from a peak of €800 million during the post-pandemic boom, according to Bernstein.
More Creative Leadership Changes Loom
McGirr’s exit follows the recent departure of Anthony Vaccarello from Saint Laurent after a decade at the French fashion house, adding to the leadership changes unfolding across the luxury sector.
Industry speculation has also surrounded Balenciaga creative director Pierpaolo Piccioli, who joined the brand less than 18 months ago after previously leading Valentino. However, no departure was confirmed in the report.
As luxury companies seek to restore growth after a period of market adjustment, creative directors face increasing pressure to deliver commercially successful collections while maintaining their brands’ identities.
“There is a lot on creative directors’ shoulders these days, as brands strive to grow again after a significant reset,” Solca said.
For Kering, the challenge will be to establish a new direction for Alexander McQueen while addressing the financial pressures affecting its wider portfolio.
