Fashion Designer Hedi Slimane Departs LVMH’s Celine

By Mimosa Spencer

PARIS (Reuters) – Fashion designer Hedi Slimane has departed from LVMH’s Celine brand, as announced by the company on Wednesday, contributing to a series of notable exits in the fashion industry amidst a sales downturn.

LVMH has appointed Michael Rider as Slimane’s successor. Rider, set to begin in his new position early next year, previously worked alongside former Celine designer Phoebe Philo for over ten years.

Slimane’s exit heightens speculation regarding shifts within the industry, which has seen many top designers changing roles. Notably, the highly sought-after position of creative director at Chanel remains vacant following the departure of Virginie Viard in June.

According to Luca Solca, an analyst with Bernstein, creative directors often leave when their impact on sales dwindles. "I don’t think this is an exception," he remarked regarding Slimane’s departure, explaining that like artists, creative directors often produce works that can become predictable over time.

Despite this, Solca acknowledged Slimane’s success at Celine, estimating that he significantly boosted brand revenue to approximately 2.5 billion euros.

Slimane, who joined Celine in 2018, made a strong impression with his signature rocker-chic aesthetic. He also became known for his slim silhouettes during his tenure at Dior Homme and Yves Saint Laurent, even inspiring Karl Lagerfeld to slim down for his designs.

The designer was known for his reclusive nature, rarely giving interviews and meticulously controlling the brand’s image. He took charge of advertising campaigns, shooting the images himself and scheduling fashion shows independently of traditional calendars.

At Celine, Slimane aimed to modernize the brand’s classic French bourgeois image for a younger demographic, featuring models like Kaia Gerber in trendy outfits that included cropped tops and faded jeans, paired with accessories like baseball caps and small leather bags. Additionally, he introduced menswear, fragrances, and makeup lines to Celine.

LVMH chairman and CEO Bernard Arnault had high expectations for Slimane, projecting annual revenue growth for Celine to reach between 2 billion to 3 billion euros within five years, significantly up from nearly 1 billion euros at the time of Slimane’s appointment.

In recent presentations, Arnault stated that Celine was experiencing "great success" under Slimane, surpassing the 2 billion euro sales mark. However, the company does not disclose revenue specifics by brand in its earnings reports.

The luxury goods sector has faced a sharp slowdown in sales this year as middle-class consumers in China have become hesitant to make purchases due to economic uncertainties and a struggling property market. Barclays analyst Carole Madjo noted that Celine is encountering "brand fatigue" and is likely underperforming in China.

This change aligns with other strategic moves at LVMH, which recently invested in Moncler, one of the most robust performers in the industry, and announced the sale of streetwear label Off-White, founded by the late designer Virgil Abloh.