What happens to a multibillion-dollar luxury brand when the boss leaves

In fashion, creative directors are royalty. Like kings and queens, they’re idolized for their successes and blamed for their failures, while always being gossiped about. The all-time greats—like Karl Lagerfeld, Phoebe Philo, Hedi Slimane—have the power to shape every aspect of a luxury brand, from its collections to its store designs (Slimane even put his stamp on the branded bottled water served at Celine’s stores). But what happens when a creative director leaves (or dies), and their successor has yet to be named?

In a period of extraordinary turnover at the top of design houses, many brands have found themselves without a creative leader for months and even years. Chanel will have shown seven collections between Virginie Viard’s departure in June 2024 and Matthieu Blazy’s first collection for the house this fall. Givenchy survived without a creative-director-designed collection for over a year until Sarah Burton presented her debut this month. Demna, just announced as the next artistic director of Gucci, won’t begin until July. Balenciaga, Fendi, Loewe and Bally have yet to announce new creative directors after recent departures.

During these rudderless in-between times, luxury brands’ collections are typically designed in-house by “the studio," either as a democratic collective or under a designated head of design. Some designers see it as a time to take long lunches; others take the opportunity to hustle. Labels usually lean on tried-and-true hits to buoy sales during this time, like archival bags and shoes. However, that doesn’t always work.

Demna, just announced as the next artistic director of Gucci, won’t begin until July.

“It typically leads to a hit on the top line," said luxury analyst Achim Berg of the independent think tank FashionSights.

In a luxury climate defined by an uncertain economy and a declining Chinese market, brands are swapping creative directors in a frantic bid for success. Berg said, “There was typically a reason for the change, which means it wasn’t selling that well in the first place."

If a creative director isn’t panning out, multibillion-dollar companies tend to have plans in place. Floriane de Saint Pierre, the founder of an advisory and executive search firm for major luxury brands, emphasized that “creative leadership is a key driver of value creation for large, influential brands." She said that boards and chief executives had succession strategies cued up at all times, which are reexamined regularly.

Despite these contingency plans, brands are often left in flux. But it’s not as bad as it sounds.

Look at the case of Chanel. Recent couture and ready-to-wear shows were well-received by critics and front-row regulars. The fall collection had moments of wearable creativity, like long black tulle skirts layered over suits. The brand has kept up its momentum on the red carpet, dressing stars including Margaret Qualley and Penélope Cruz for the 2025 Oscars.

All-time-great creative directors like Phoebe Philo have the power to shape every aspect of a luxury brand.

After last week’s show in Paris, the store was as busy as it’s been in recent years, with gaggles of women gathering around piles of quilted handbags. The true grails at Chanel, from purses to costume jewelry to black tweed suits, have remained constant since the 1920s.

“What we typically see is the momentum that was driven by an outgoing creative director continues, and studios in large part continue designing within that same design language," said Sam Lobban, executive vice president and general merchandising manager of Nordstrom. “So it’s still familiar to the customer."

Lobban said that Nordstrom did not tend to reduce its spending on designers it carried during in-between seasons. He said most customers were not aware of personnel changes at brands. Savvy shoppers will try to buy pieces from the last collection of a special creative director, or the first collection from a new one. But he said people typically bought into the long-term vision of the brand and its quality level, even between creative directors.

At Chanel, recent couture and ready-to-wear shows were well-received by critics and front-row regulars.

Transition periods are opportunities to truck out house signatures. For example, Gucci can lean on its classic bamboo-handle bags and Jackie-O-era silk scarves, and Bottega Veneta will highlight tried-and-true products like its intrecciato woven accessories. Merchandising departments, which are tasked with liaising between design and sales departments, often muscle in and request reliable styles that have sold in the past.

That doesn’t necessarily sit well with the designers on staff. Nina Christen, who worked at Saint Laurent and Celine in the mid-2000s through multiple transitions, described it as, “basically the worst ground for anything creative to happen."

There are opportunities for go-getters in this period, she said, though “They need enough willpower and authority to impose themselves, which then can also create tensions in the teams and make creative output more difficult." Christen said she had designed some of her best, most personal shoes during the period at Celine between Philo and Slimane, such as a pair of boots with leather pompoms on the toes.

Transition periods are opportunities to truck out house signatures. For example, Gucci can lean on its classic Jackie-O-era silk scarves.

While these periods can be stable—and even surprisingly fruitful—they cannot go on too long. Lobban cautioned that while an outgoing creative director can provide momentum that a brand can ride for some time, longer than a season or two can be damaging.

What’s more, the transition period doesn’t end—pouf!—when the new creative director arrives. The analyst Berg said not to underestimate what he calls “the time lapse" of a new arrival. “It typically takes two or three collections until they’ve managed to really touch the different product categories. And if they are asked to even introduce new categories, it might take even longer."

It’s not just about clothes. A good creative director sets the tone for the entire marketing of a successful collection, too, from ad campaigns to social media to celebrity partnerships—all of which needs to stay fresh and surprising. Lobban said, “If you’re standing still too long in an overall industry and ecosystem that’s constantly putting out new messages, it becomes noticeable."

Write to Rory Satran at rory.satran@wsj.com