Stefano Pilati Stays Put

(NEW YORK) Stefano Pilati has signed a new multi-year contract with Yves Saint Laurent parent Gucci Group, that keeps the Italian-born designer at the helm of the iconic French fashion label.

"Yves Saint Laurent is pleased to announce that it has renewed its contract with current creative director Stefano Pilati. Stefano Pilati will be in charge of the creation of all categories of products. He will also oversee the image of the brand," the company said in a brief statement.

YSL and Pilati both declined further comment.

Pilati was handpicked by Tom Ford in 2000 to be his women's design director at YSL. In 2004, the 42-year old took over the resigns at YSL following Ford's resignation. Pilati joined YSL having worked at a number of fashion houses, including Miu Miu, Prada, and Giorgio Armani, where he held senior design positions across the board. Gucci Group's decision, announced today, quashes speculation that Pilati was preparing to leave YSL for another fashion house, namely Valentino (Alessandra Facchinetti was subsequently named Valentino's successor). Former Dior Homme designer Hedi Slimane was also rumored to be taking over Pilati's duties, but he has since concentrated fully on his art and photography projects.

Pilati's initial collections for YSL were greeted by a controversial mix of reviews, but his aesthetic has since developed nicely and shaped a significant share of the fashion community. His recent Fall 2007 collection was deemed his best ever for the house, and a steady stream of hit accessories, including the Muse, Downtown, and Tribute bags, have kept the brand in the limelight. Earlier this year, the company unveiled a collection of YSL essentials called Edition 24 that were designed to reach a younger customer.

Most recently, YSL launched a "Manifesto" marketing campaign during New York and London fashion weeks, where hawkers handed out a newspaper form with all its current ads, starring Gisele Bündchen. A total of two million copies are slated to be distributed this month, including at the Milan collections next week.

But despite all the critical and editorial acclaim, Pilati and Valerie Hermann, YSL's president and chief executive officer, have struggled to narrow the company's losses. For the first half of 2007, the company posted losses of 26 million euros, or about $34.6 million, down from 35 million euros, or $43 million, from the previous year. Sales in the first half of the year, however, have totaled 101 million euros, or $140.2 million, up from 85 million euros, or $118 million.