Hedi Slimane, the acclaimed fashion designer, has concluded his tenure at Celine, a brand under the LVMH umbrella, as announced by the company on October 2, 2024. This departure is part of a broader trend of designer changes in the luxury fashion sector, which is currently experiencing a deceleration in sales growth.
Slimane, who assumed the role of creative director at Celine in 2018, swiftly left his mark on the historic label with his distinctive aesthetic. LVMH acknowledged his contribution, stating, "Under his creative and artistic direction, Celine has experienced exceptional growth and established itself as an iconic French couture house."
The luxury goods industry, known for its sensitivity to economic fluctuations, is facing challenges, particularly in China, the world's second-largest economy. Middle-class consumers in the region are becoming more cautious with their spending due to property market concerns and job insecurity.
Bernard Arnault, chairman and CEO of LVMH, had set ambitious targets for Celine under Slimane's leadership. The goal was to increase the brand's annual revenue from approximately 1 billion euros to between 2 and 3 billion euros within a five-year period. While LVMH does not disclose individual brand revenues, the overall luxury goods sector has experienced a significant slowdown in 2024.
This shift in the industry landscape has led to several changes within LVMH:
- Investment in Moncler, a strong performer in recent years
- Divestment of Off-White, the streetwear label founded by the late Virgil Abloh
- Adaptation to the growing trend of "quiet luxury," favoring understated, high-quality fashion
The departure of Slimane has fueled speculation about potential moves in the industry, with the most coveted position of creative director at Chanel remaining vacant since Virginie Viard's exit in June 2024.
"Under his creative and artistic direction, Celine has experienced exceptional growth and established itself as an iconic French couture house."
As the luxury fashion sector navigates these changes, it continues to adapt to evolving consumer preferences, the growing importance of e-commerce, and increasing concerns about sustainability and ethical practices. The industry's ability to innovate and respond to these challenges will be crucial in shaping its future trajectory.