Hi, and welcome to Line Sheet, and happy first day of school to new Kering C.E.O. Luca de Meo. I’m still in New York: this weekend, I saw some very good (and bad) fashion; brushed by Oprah and Chanel C.E.O. Leena Nair (who is very magnetic) at Edward Enninful’s launch party for his new magazine; chitchatted with Substackers Derek Blasberg and Tory Burch about their favorite Substacks at Raf’s; and attended my friend’s engagement party at the Waverly Inn. I also celebrated Monse’s 10th anniversary in Long Island City and went to see Shakespeare in the Park. Thanks to Britt for scoring tickets—I would have never waited in line, even for Twelfth Night starring Lupita Nyong’o. It was something.

I’m hoping this issue drops as we’re all sitting down for Tory’s show at 1 Hanson Place in Brooklyn. I’ll have my thoughts on New York Fashion Week in tomorrow’s email. Until then, I’ve got updates on the exit of Gucci C.E.O. Stefano Cantino, the Ssense bankruptcy saga, and the future of Armani. Plus, a Vanity Fair micro-reveal.

Remember when I used to make you feel really, very bad for forwarding this email, or screenshotting it and blasting it to the group text? (You deserved the spanking—and also loved it.) Finally, it’s that time again! Puck is four years old and we are hosting our annual sale: New subscribers will receive 20 percent off an annual membership, while current subscribers who upgrade to the Inner Circle will also receive a discount. (It’s worth it.)

Programming note: Tomorrow on Fashion People, my guests are Eckhaus Latta designers Mike Eckhaus and Zoe Latta. Good thing their new collection is excellent, or this would have been extremely awkward. We cover the state of New York Fashion Week, what should happen with Armani, the best and worst Emmys looks, what they’d like to see Mark Guiducci do at Vanity Fair, and plenty more. Listen here and here.

Mentioned in this issue: Pietro Beccari, Louis Vuitton, Giorgio Armani, Leo Dell’Orco, LVMH, L’Oréal, EssilorLuxottica, Bernard Arnault, Hedi Slimane, Ralph Lauren, Kering, Chanel, Gucci, Stefano Cantino, Francesca Bellettini, Luca de Meo, Vanity Fair, Mark Guiducci, Ssense, and many, many more…

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Three Things You Should Know…

Cantino canned?: Speculation that Gucci C.E.O. Stefano Cantino might be replaced by Kering deputy C.E.O. Francesca Bellettini started back in August. At the time, the logic made sense: Cantino, who had never before run such a large business unit, was probably not the right candidate to lead a turnaround at Italy’s biggest fashion brand. Plus, more changes would be required following the botched Sabato De Sarno era and amid the luxury recession. But the mechanics and timing of the possible transition were both a little screwy. Cantino had been recruited from Louis Vuitton by Bellettini, his old Prada colleague, less than two years ago. And would Bellettini, herself, suffer through a public demotion? Also: Kering was in the midst of its own leadership transition. Luca de Meo, the well-known turnaround artist and adult in the room, wouldn’t even start his job until… today.

Anyway, sometimes rumors really are a preview of the truth. Last week, Cantino wasn’t in the office, and a local Italian outlet reported that he was done. By Sunday, BoF had multiple sources confirming his departure, citing “personal reasons.” While an announcement of his exit has yet to materialize, I’m told it will happen in the coming days—perhaps even Tuesday—and that Bellettini will indeed be made C.E.O. of Gucci. Jean-Marc Duplaix, the company’s other deputy C.E.O., is also dropping that title but retaining the role of C.O.O.

As with everything that’s happened at Kering over the past two years, it’s nobody’s fault, and yet everyone’s fault. Cantino initially wanted to supersize Gucci by following the Hermès and Louis Vuitton model—i.e., focusing on high-margin, evergreen accessories and leather goods, which generate predictable revenue, rather than relying on the trend-driven seasonal fashion business. The problem was that Gucci is a fashion brand, and the runway product was not driving sales of the carryover product. I did hear that Gucci had positive comps last month, but that’s nothing to write home about, given the double-digit dips that have been commonplace during the past couple years.

Folks will argue that campaigns and projects put in place during the early days of De arno’s tenure—the Debbie Harry campaign with the Blondie bag, etcetera—have actually worked fairly well. They’ll also gripe that Cantino should have never been given such a big job. After all, before Cantino entered the picture at Gucci, he was rumored to be headed to the smaller and more stable Saint Laurent. (This time, Cantino was asked if he wanted to take up another position in the company, but he declined.)

Anyway, I always thought Bellettini should run Gucci. I suspect the original François-Henri Pinault succession plan called for moving former Gucci C.E.O. Marco Bizzarri into the group C.E.O. role, and having Bellettini segue from Saint Laurent into the Gucci gig, but things probably went awry when Bizzarri was sacrificed at the behest of activist investors in the summer of 2023. While this is certainly a demotion for Bellettini, it’s also probably a better fit at this point in her career. She has the capability to make things right.
Remember, I told you, men are back!: I’m hearing that Mark Guiducci’s first Hollywood cover for Vanity Fair (it’s the November issue now, remember) will be all guys—a real choice, I suppose—with women featured elsewhere in the portfolio. Notably, also, the cover will not be filled with the typical roster of This is who we think will be nominated types. Instead, it will illustrate a story, which I guess will explore the state of the man in Hollywood, given that men are in crisis, etcetera. (See: GQ’s current October issue for context and helpful guidance if you, too, are a man in crisis.)

As Guiducci has made clear, he doesn’t want to mirror the trades: The Hollywood Reporter, Variety, yada yada, all copied the O.G. VF cover concept a long time ago, touting all the major nominees in one place, and it’s certainly worth shaking things up. Also, menswear is a bright spot in luxury fashion at the moment: Brunello Cucinelli, Zegna, and Loro Piana are all thriving (or close to it). A rep for Condé Nast did not respond to a request for comment.
Ssense and sensibility: On Friday, the courts gave the Montreal-based retailer permission to restructure, effectively the Canadian equivalent of Chapter 11 bankruptcy protection. Many of Ssense’s current investors have supplied a cash injection of C$40 million under the restructured debt. So, will brands ever get the money they’re owed? That’s to be determined, of course, but companies under this kind of restructuring typically have no obligation to pay past invoices—and vendors often need to take up their gripes through insurance companies.

Ssense’s primary objective will be to repair relationships with brand partners and build out a U.S. operation so that it can skirt tariffs. (A lot of foreign companies are going to need to create distribution centers and the like here in the States, which I guess is good for the domestic economy?) On the brand side, many won’t have a choice but to comply—they need the receipts and Ssense is a big account. Also, the amount Ssense owes most brands pales in comparison to Saks Global. As for whether this restructuring will solve the company’s problems: As I’ve said a million times before, the wholesale model is faulty, and therefore retailers are going to continue to default.

Now, the latest on Armani…

The Armani Auction Begins

The late designer stipulated in his will that his namesake must be sold off, and named three preferred buyers: EssilorLuxottica, L’Oréal, and obviously LVMH. Which makes the most sense, and could a stalking-horse bid emerge?

Lauren Sherman

About a month ago, I started hearing murmurs that Pietro Beccari, the uber-successful Louis Vuitton C.E.O. who had previously led record-breaking eras at Dior, was getting itchy. I was told by multiple sources within LVMH that he wanted more out of life than to simply manage the conglomerate’s most lucrative business—he coveted something to call his own. Or, some speculated, he simply wanted to move back to Italy, with fantastical designs on Giorgio Armani.

I was thinking of Beccari last week, shortly after Giorgio Armani died. After all, it was revealed that the designer had instructed his heirs to sell 15 percent of the business within the next 18 months, and allow the buyer to increase their position up to 69.9 percent after three to five years. The remaining 30.1 percent of the business would be owned by the Armani Foundation—which, combined with Armani’s partner, Leo Dell’Orco, controls 70 percent of the voting rights on the board. Armani had also specifically called out three preferred bidders for the company: luxury powerhouse LVMH, beauty group L’Oréal, and eyewear conglomerate EssilorLuxottica. If they’re not interested in owning more than the original 15 percent, the board was instructed to pursue an I.P.O.

A MESSAGE FROM OUR SPONSOR

JEWELRY AS HIGH ART

David Yurman High Jewelry is the pinnacle of the

House’s creative expression and artistry,

marrying form and color with exceptional

craftsmanship for modern collectors.

The Liberty collection evokes the spirit of New York

City’s iconic skyline. Bespoke-cut diamonds and

luminous emeralds are hand-set in white gold, radiating

icy perfection like the Statue of Liberty’s crown.

Book a private appointment: concierge@davidyurman.com

EXPLORE DAVID YURMAN

I found the news more exhilarating than shocking. Armani was controlling, but also incredibly practical. He saw the way the world was moving and presumably recognized that there had to be other parties involved to protect the business once he was gone. And Dell’Orco and the board—which includes Armani’s nephew Andrea Camerana, Rothschild’s Irving Bellotti, and Yoox founder Federico Marchetti—are unlikely to challenge the will. They, too, recognize the economic reality of operating an independent firm in a highly consolidated industry.

But while much has been said about the three strategic investors, there is still a chance, according to the will, that another bidder could be accepted. Indeed, I’m told Beccari has been in talks with multiple private equity firms to make a stalking-horse bid of his own. Beccari did not respond to my direct request for comment.

A Bernard Back Channel?

Some may wonder if this is all just a dealmaking ruse—if, perhaps, Armani privately arranged a deal with Bernard Arnault years ago. Last fall, speculation proliferated that LVMH was about to buy Armani, and Hedi Slimane would be installed as its creative director. The rumors were gently stoked by Arnault family members repeatedly sitting front row at Armani couture shows, and the fact that a combination made sense. For Mr. Armani, like the 85-year-old Ralph Lauren, there is arguably no more elegant option than to sell the family heirloom into the care of the world’s eighth-richest man and the undisputed chief of their industry.

This was consistent with earlier whisper campaigns. Some time in the mid-aughts, there was a rumor going around the Armani offices that Giorgio got this close to saying yes to Arnault’s offer, only to demand more money—another €1 billion, say. Obviously, it never happened, but the speculation continues, as it often does in this industry, informed or otherwise. On the Wikipedia page for Armani, as recently as Sunday night, LVMH was described as an “expected” shareholder after the bidding process is complete.

Anyway, handshake deals don’t survive the grave, heirs, and legions of $2,000-an-hour T&E attorneys. While the Arnault family has great reverence for Mr. Armani, they didn’t conquer the luxury market via sentimental dealmaking. Clothing is not as high-margin or consistent as handbags, and it’s impossible to imagine that even LVMH could figure out how to tack a competitive leather goods business onto Armani at this point. Like Ralph Lauren, much of Armani’s revenue comes from more affordable clothing.

That’s fine, but it’s not LVMH’s preferred model. Last year, Armani generated something like €2.3 billion in annual sales but an estimated 3 percent operating profit. It’s downright affordable for LVMH, but their recent acquisitions have focused on companies with a specific expertise and a wide operating margin: Bulgari, Tiffany, Loro Piana, and Rimowa just needed LVMH’s stores and infrastructure to further improve margins and accelerate sales. Armani doesn’t fit the paradigm.

And it’s also not a stretch to imagine L’Oréal or EssilorLuxottica coveting Armani. While neither is really in the apparel business, EssilorLuxottica owns Supreme and has been shopping for new fashion prospects. And L’Oréal already has a lucrative licensing deal with Armani to distribute the brand’s fragrances and cosmetics, which generate more than €1 billion a year in retail revenue. It’s one of the rare fashion-brand beauty lines that performs well in categories like skincare and foundation.

The current trend in the industry is toward wholly owned businesses: Kering is bringing more of its beauty production back in house, like LVMH and Chanel before it, and it may be prudent for L’Oréal to pursue a similar strategy. Then again, L’Oréal doesn’t have much fashion expertise and would likely need to rely on a partner to help manage the business, as Estée Lauder has with Zegna for Tom Ford.

And yet… some wonder if Armani, a venerated and global brand name, would be too much for the Arnaults to pass up, caveats be damned. At the very least, the chances of Beccari getting his hands on this seem diminished after LVMH, where he is still gainfully employed, was named as a preferred bidder. Perhaps he has entered some sort of agreement with the company, or perhaps his alleged fantasies are really only just that. But I can’t imagine a world in which Arnault would let Beccari go easily. Not even for Mr. Armani.

What I’m Reading… and Listening To…

Best dressed at the Emmys, which was generally a hot mess of a red carpet due to a lack of available dresses: Selena Gomez in Louis Vuitton, Chloë Sevigny in Saint Laurent, Jenna Ortega in Givenchy, Pedro Pascal in Celine, Hunter Schafer in McQueen, Colman Domingo in Valentino, Seth Rogen in Etro, Charlie Hunnam in Saint Laurent, Sam Nivola in Dior, Rashida Jones in Dior, Michelle Williams in Chanel. [Vogue]

I don’t think anything you read this week will be as pleasurable as flicking through these simple, revealing Q&As, each featuring one of the designers making their debut this season. It will make you want to… collect them all? [New York Times]

Mel Ottenberg talks to Index’s Peter Halley! [Interview]

Anna Weyant’s dollhouse, staged during New York Fashion Week with contributions from Line Sheet king Marc Jacobs, was fantastical by all accounts and I’m sad I missed it. Capital One was the underwriter. See, sponcon can be good when entrusted to creative people. [Vogue]

The moment in the Fashion Month cycle when I resort to listening to How Long Gone has come earlier than usual. (I’ll take podcast recs, by the way. Nothing related to fashion, please.) Anyway, the Pamela Hanson episode is a 10/10. They also talked to Michael Grynbaum about a lot more than Condé. [How Long Gone]

Gwyneth Paltrow, who was looking real good at Michael Kors last week, debuted her new Goop fashion concept—Gwyn—on Sunday in Tribeca. (Rachel Strugatz wrote about this nine months ago.) Anyway, the line is positioned as a bit higher end than G. Label, but the reality is that it’s not really that different. There are a million reasons they probably thought it was a good idea to do this, and one is that Paltrow has always been obsessed with producing in Italy, and now that everyone’s margins are shrinking, one way to charge more is by rebranding some of the product as “higher end.” [Inbox]

Brian Reyes, a fabulous designer who closed his namesake collection 14 years ago, is back with a line of made-to-order eveningwear. [Vogue]

Derek on Deeda Blair! [And Another Thing]

I love this new video touting Gap low-rise jeans. This is the Gap I want to see. [Instagram]

Until tomorrow,
Lauren

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