Fashion
Balenciaga’s Reinvention: Has the Brand Recovered?
Felix Shentaler
Balenciaga was under heavy fire at the end of 2022 for its ad campaign featuring children posing with teddy bears that were adorned with BDSM gear. Though the brand has been happy to place this controversy behind them, did this scandal have any lasting effects now, over 3 years later?
(2022 holiday gifting campaign)
(2022 holiday gifting campaign)
The original campaign seen above was meant to promote a holiday gift campaign featuring the plush bear bags, but it seriously backfired when they chose to use children to promote the product. The campaign received rightful backlash and public condemnation, causing Balenciaga to backpedal and withdraw the images from all sources. They released apologies and statements for the images, but their words fell short when, not long after, their spring 2023 campaign contained a document of a US Supreme Court case interrogating whether child sexual abuse imagery legislation impedes freedom of speech rights. These two incidents in quick succession led to even greater uproar, with ambassadors dropping the brand and customers filming themselves burning their products for social media under the hashtag #cancelbalenciaga.
(Balenciaga x Adidas Spring 2023 campaign on their website, courtesy of X user @shoe0nhead)
Though their sales and reputation took a hit in the immediate aftermath, did this uproar cause any effects that are still lingering 3 years later? Well, it’s hard to compare revenue directly as Kering does not break down its quarterly reports by fashion house. Balenciaga exists in their grouping of “Other Houses,” which excludes Gucci, YSL, and Bottega Veneta. This means that when viewing the Q4 sales, we have to consider that alongside Balenciaga, there are likely at least 5 other houses included in this grouping. In the final quarter of 2022, when this scandal occurred, the revenue among the “Other Houses” was nearly 3.9 billion euros (≈ 6.2 billion CAD), and in the first quarter of 2026, their reports have since changed to include all houses, except for Gucci, in a category labelled “Kering Fashion & Leather Goods”. With more houses included in one category, you may expect a higher revenue. Unfortunately for them, Q1 of 2026 only saw 2.8 billion euros in revenue (≈ 4.6 billion CAD). In fact, looking back at their annual reports since 2017, Kering’s revenue only began to decline after 2022, with annual reports showing consistent growth up until that point. The most significant decline was between 2024 and 2025, with a 2.5 billion euro decline. It seems as though revenue has been declining by increasing amounts every year, with no sign of slowing down.
(Balenciaga x Adidas Spring 2023 campaign on their website, courtesy of X user @shoe0nhead)
(Visible document among the paperwork in the advertisement)
But now that a new creative director has stepped in, the brand seems to be shifting from edgy streetwear and shocking looks back to classic Balenciaga silhouettes and staples. Recent collections paying homage to the brand's roots and previous directors, as Piccioli finds his footing with the brand and showcases his vision and talents. And the good news is that the reception is pretty positive! People are loving the return to classics and the playful nods to previous collections. Now that Balenciaga has a new director, it can recover from the misdirections of the past and focus on creating the stunning garments that they’re known for. They’ve also announced new ambassadors for the new era, which include renowned actress Winona Ryder, Heated Rivalry actor Hudson Williams, and actress and model Havana Rose Liu, among many others. This new era, which Piccioli has named the Heart and Body Campaign, promises a fresh start. One thing is for sure, though: this new era of Pierpaolo Piccioli’s Balenciaga promises to be one worth tuning in for.
