Fashion designer Hedi Slimane is leaving LVMH's Celine

Paris, France
Reuters
—

Fashion designer Hedi Slimane has left LVMH's Celine brand, the company said on Wednesday. It marks the latest high-profile departure from a fashion label as the industry struggles with a decline in sales.

LVMH has appointed Michael Rider as Slimane's successor. Rider, who will start his new job early next year, worked with former Celine designer Phoebe Philo at Celine for over a decade.

Slimane's departure will increase speculation of a shakeup in the industry, which has seen scores of top designers change jobs. One of the most sought-after positions, creative director of Chanel, remains vacant following the departure of Virginie Viard in June.

Creative directors most often leave when they no longer have a positive impact on sales, said Luca Solca, an analyst at Bernstein.

“I don’t think this is an exception,” he said of Slimane’s exit, noting that creative directors, like artists, tend to produce variations on a theme that can become predictable.

Solca said Slimane has done well at the label, likely more than doubling the brand's sales to around 2.5 billion euros ($2.76 billion).

Slimane could not be reached for comment.

Slimane joined Celine in 2018 and quickly made a name for himself at the historic fashion house with his distinctive rocker-chic aesthetic.

He is also known for the slim silhouettes he offered at Dior Homme and at Kering's Yves Saint Laurent, which famously inspired Karl Lagerfeld to slim down to fit into his Dior designs.

The designer rarely gave interviews and maintained strict control over all aspects of the brand's image, shooting promotional images himself and staging fashion shows outside the traditional calendar.

At Celine, Slimane tried to update the brand's French bourgeois aesthetic for a younger audience, featuring model Kaia Gerber in advertising campaigns in cropped tops and faded jeans, with a baseball cap and small leather handbag.

He also launched a men's collection as well as fragrances and makeup at Celine.

LVMH Chairman and CEO Bernard Arnault set ambitious goals for Slimane, telling investors shortly after he joined that LVMH intended to grow Celine's annual sales to nearly 1 billion euros (US$1.10 billion) within five years. dollars) to 2 to 3 billion euros over time.

In January, at LVMH's annual results presentation, Arnault said Celine was having “great success” thanks to Slimane, generating sales of over 2 billion euros.

The Company does not break down revenue by brand in its published income statements.

Sales growth in the broader luxury goods industry has slowed sharply this year as middle-class buyers in China hold off on purchases due to the housing crisis and job insecurity.

Carole Madjo, an analyst at Barclays, noted during a recent trip to China that Celine was struggling with “brand fatigue” and was likely to underperform in the country.

The change follows other moves at LVMH, including its investment in Moncler, one of the best-performing sectors in recent years.

This week it was reported that it had sold streetwear label Off-White, founded by the late Louis Vuitton menswear designer Virgil Abloh.