The strategies of new CEOs

2024 appeared to be shaping up to be a transition period for many of the industry’s largest players as they attempted to quickly, but effectively, turn around disappointing financial results and return to growth, profitability or both. To lead such strategies, many have reorganized their management teams and appointed new CEOs who are energetically driving change. FashionUnited looks ahead to what’s on the horizon as the biggest stories of 2024 continue to evolve into 2025.

Nike’s move into a sports-focused, premium business

Sportswear giant Nike has struggled due to increased competition in the market, leading to disappointing financial results in recent quarters. In this context, the company brought in veteran Elliot Hill to lead the team in September. It wasn’t until December 2024, when Nike announced its second-quarter results, in which sales continued to decline 8 percent, that Hill got his first chance to outline his plans for the company. The CEO made it clear that “immediate action” needed to be taken to reposition the company and, after noting feedback gathered from a wide-ranging review, Hill announced phases of a recovery plan that would address Nike’s apparent loss of obsession with sports would tackle.

This plan focuses on five specific items intended to return Nike to its former status as a sports-focused, premium company. From a sharper focus on specific sports segments and a more sports-centric marketing plan to an overhaul of its franchises, each move is designed to address certain market demands identified by Hill, with the mission to drive incremental growth. Hill also places an emphasis on rebuilding partner relationships, especially with premium retailers, with which he wants to improve the customer experience.

In his conclusion, Hill said: “Some of these actions are already underway and some need to be implemented more quickly. And I will continue to evaluate and assess what is needed. I recognize that some of these actions will have a negative impact on our results in the short term.” But we’re taking the long view here. We’re making the decisions that are best for the health of our brands and businesses. I strongly believe that Nike’s path to sustainable, profitable growth will be through sports expired.”

Kering’s leadership reorganization

In addition to a reorganization of creative directors, luxury group Kering has also made some major shifts within its management teams, with new CEOs for Gucci, Saint Laurent and Balenciaga. The big shift came in response to declining demand for luxury that has affected the performance of many brands in the sector, but especially Gucci. Following the appointment of Stefano Cantino at the helm, the Italian brand reported a 26 percent drop in sales for the third quarter of 2024. So it appears that Cantino has been brought in to improve the situation, with a statement from Kering at the time noting that he would continue to build on the foundations laid by his predecessor, Jean-François Palus, thus opening a new chapter.

Similar changes were also implemented at Saint Laurent and Balenciaga, where Cédric Charbit and Gianfranco Gianangeli were appointed CEO respectively. Their addition transforms the role of Kering’s deputy CEO, Francesca Bellettini, into one fully dedicated to the development of all Kering’s fashion, leather goods and jewelry houses. Charbit, meanwhile, has been tasked with further building Saint Laurent’s positioning, while Gianangeli at Balenciaga must strengthen and expand the brand’s reach.

Michael Kors restructures after failed merger

Following the aborted Tapestry-Capri merger, Capri has reassessed its business model, particularly at Michael Kors, where the focus now appears to be. To lead this phase, and as part of broader reorganization plans, Capri’s current chairman, John Idol, has joined as CEO of the brand, with a central mission to lead Michael Kors back to growth. At the time of his appointment, Idol said he wanted to implement strategic initiatives to stabilize revenue and excite both new and loyal customers. The company has also appointed Philippa Newman as Chief Product Officer, a role in which she will lead a product transformation strategy.

Dr. Martens survives ‘transition year’

After reporting increasing losses for the first half of the year, Dr. Martens will take “swift action” to correct the situation. This will take shape in a cost savings plan overseen by new CEO Ije Nwokorie, who will leverage his previous experience in driving DTC-driven growth. 2024 was written by Dr. Martens has already been labeled as a “transition year”, with four main objectives: building on product-focused marketing, improving US DTC performance, reducing operating costs and strengthening the balance sheet. These all remain essential in the year ahead, especially as the brand has ended up in the red in the first half of the year, alongside an 18 percent decline in sales.

Boohoo considers splitting

Boohoo made headlines several times in the second half of 2024, largely due to the public row with major shareholder Frasers Group. These events came to light in mid-October, when CEO John Lyttle resigned following the announcement of a strategic review of Boohoo’s corporate structure, confirming earlier speculation about a possible portfolio split. Ignoring Frasers’ attempts to install its own CEO, Boohoo appointed Dan Finley as Lyttle’s successor, hoping he could deliver the same turnaround magic for the entire group as he had previously done at Debenhams.

Finley and the board quickly launched a fundraising campaign that raised £39.3 million through placement and subscription as well as a public offering. This was followed by a round of redundancies at the Manchester head office, with a reported 200 employees affected. Boohoo expects higher gross merchandise value (GMV) and stronger adjusted EBITDA in the second half of FY25, despite plans to invest further in brands. The board of directors believes that the group remains fundamentally undervalued and will therefore continue to review options for its non-core and non-strategic assets.

Victoria’s Secret

2024 was something of a comeback year for the previously controversial lingerie label Victoria’s Secret. We say “sort of” because even though the brand returned to the runway and relaunched its own brands, losses were still ongoing and concerns about its financial situation were impacting the stock. However, things started to look more promising in the second half of the year, especially after the announcement that former Savage X Fenty director Hillary Super would be taking on the role of CEO. Described as “taking brands to the next level,” Victoria’s Secret appears to be relying on Super’s experience to “drive the company’s next chapter and deliver on the most important part of its transformation strategy: accelerating the growth of its core businesses in North America”.