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Hedi Slimane’s exit from Celine marks the latest in a flurry of high-profile departures as the industry faces a significant downturn.

The fashion industry was already reeling when the announcement arrived on Wednesday: Hedi Slimane, the creative director of the French luxury giant LVMH’s Celine, was leaving.

Slimane, 56, transformed Celine during his nearly seven-year tenure, scrapping the minimalist look his predecessor had popularized in favor of a 1960s rock aesthetic. The brand was already big when he got there, and the changes were risky. But somehow, he made it even bigger.

Now, everyone in fashion wants to know where he’s headed. After all, plenty of brands could use all the help they can get as the industry faces a significant sales downturn.

The fashion industry is in trouble. And Slimane’s exit marks the latest in a flurry of high-profile departures. One of the biggest and most coveted design jobs in fashion, at Chanel, has been vacant since the summer.

As brands have increased the prices of luxury goods, spending has cooled, including in the Chinese market that has long fueled sales. Companies looking to lure back customers are tapping big design talent to reinvigorate their offerings.

The economic pressures and accompanying leadership changes have created a sense of upheaval in an industry that hopes customers are focused on the latest runway fashions, not the fashion labels’ balance sheets.

Amid the industry’s efforts to enliven the look of sagging luxury brands, Valentino, owned by Mayhoola for Investments, a holding company owned by the Qatari royal family, and Kering, hired Alessandro Michele. The renowned Italian designer brought whimsy to Gucci and helped to more than double its sales in his first few years. Michele joined Valentino as its creative director in March, replacing veteran designer Pierpaolo Piccioli. His first runway collection for Valentino, shown in Paris over the weekend, had echoes of the ruffled dresses and retro prints he once paraded down Gucci’s runway.

Gucci, meanwhile, has seen a sales downturn. During the second quarter of 2024, revenue at the brand was down by 20%. The brand tapped Sabato De Sarno, a little-known designer who’d previously worked at Valentino, to lead its creative in January 2023.

When Slimane was hired at Celine in 2018, he was considered a controversial choice for the LVMH brand. His predecessor, Phoebe Philo, had earned a devoted fan base of professional women for her minimalist power dressing. Coming from Saint Laurent, Slimane was known for a radically different style: slim-fit denim, leather jackets and sexy miniskirts.

Against some expectations, Slimane made Celine an even bigger business. It launched menswear and beauty under his leadership, and LVMH’s profits soared. Though the luxury conglomerate does not break out earnings by brand, HSBC estimated that Celine’s sales totaled €2.6 billion in 2023, or about $2.8 billion at current exchange, making it LVMH’s third-biggest fashion brand, after Louis Vuitton and Dior.

“Under his creative and artistic direction, Celine has experienced exceptional growth and established itself as an iconic French couture house,” Celine said in a statement on Wednesday.

Though creative appointments can help revive a brand, they are not a guaranteed bulwark against market headwinds. High interest rates, inflation and a cool-down from consumers in China have led to shrinking profits.

But a creative shift tends to be a brand’s first line of defense. Two of fashion’s biggest names have recently been brought into houses that have been struggling.

Sarah Burton, who took over for Alexander McQueen after the designer died in 2010, stepped down from the brand in 2023 and was appointed creative director at Givenchy in September. Haider Ackermann, a French designer whose fans include Tilda Swinton and Timothée Chalamet, was appointed creative director at Tom Ford, replacing Peter Hawkings, who exited the role after less than a year. Neither designer has debuted a collection yet.

But luxury’s biggest brand in creative limbo is undeniably Chanel. Privately held by Alain and Gérard Wertheimer through Chanel Limited, the company has lacked a lead designer since June, when Virginie Viard stepped down. She had been personally picked by the late Karl Lagerfeld to succeed him as artistic director. Chanel’s spring 2025 collection, shown in Paris on Oct. 1, was designed by ​​a collective team of designers.

Among the many industry heavyweights whose names have been floated to fill Viard’s seat is Slimane, who just revealed a very Chanel-like final Celine collection of pleated skirts, houndstooth suiting and branded accessories during Paris Fashion Week.

“A new creative direction will be announced in due course,” a representative for Chanel said.

Taking over for Slimane at Celine in early 2025 is Michael Rider, a 42-year-old American designer, the brand announced Wednesday. Rider was previously the creative director of Polo Ralph Lauren, and had worked as Celine’s design director with Philo.

“Michael’s vision, creative talent, together with his genuine nature and strong connection to Celine’s heritage make him a natural choice to continue to build a long-lasting success for the Maison,” Séverine Merle, CEO of Celine, said in a statement.

Luxury’s musical chairs have extended to the C-suite, too. In July, after revenue dropped more than 20%, Burberry replaced CEO Jonathan Akeroyd with Joshua Schulman, who was previously CEO at Michael Kors and Coach. In September, Dior hired Benedetta Petruzzo, the CEO of Prada sister label Miu Miu, as its managing director.

The downturn hasn’t hit every brand. Prada, Hermès and Brunello Cucinelli reported sales growth in July. But Burberry, Hugo Boss and Cartier owner Richemont all took a hit. LVMH also reported slowing sales in July, with demand among Chinese consumers dropping.

Some labels, such as Burberry and Saint Laurent, have lowered prices to appeal to more middle-class shoppers, while others are introducing smaller styles at more affordable prices.

A fresh creative vision could help reinvigorate demand, said Bernstein luxury analyst Luca Solca.

“Luxury is mostly about product. And product comes from creativity,” Solca said. “Having fresh ideas in the creative department should be very important in boosting desirability and ultimately revenue growth.”