Gucci Scores For PPR

PPR last week stated that lusty demand for Gucci shoes and bags raised the French luxury and retail groups' revenues in the first quarter. Sales of leather goods at Gucci bounded more than 25 percent, propelling sales at the Italian company up 14.2 percent to 429.9 million euros.

Overall, PPR's luxury division reported sales were up 10 percent to 711.5 million euros, or $933.8 million, the latest indication of a robust environment for Europe's key luxury players. The gains at PPR's luxury division helped offset mild increases at its retail arm, such as the Printemps department store chain and the Redcats catalogue business, which were stalled by weak consumer spending in France and elsewhere in Europe.

PPR said its sales in the three months through March 31 improved 2.2 percent to 4.11 billion euros, or $5.39 billion, from 4.02 billion euros, or $5.27 billion, a year ago, largely in line with analysts' consensus expectations.

Though Pinault trumpeted the stellar leather goods sales at the Gucci brand, he reported lackluster sales of clothing - including at most of the division's other labels, which also include Yves Saint Laurent, Stella McCartney, Alexander McQueen and Balenciaga. He called the flat ready-to-wear sales endemic to the industry, and said he hoped for a pickup later this year.

www.guccigroup.com
30 April 2005

Gucci Revamps Design Team

Gucci, the world's third-biggest luxury goods group, has revamped its design team yet again, as it looks to bounce back from a 23 per cent slide in profits.
The Italian fashion house also sees the shake-up - just two years after star designer Tom Ford quit the firm - as a crucial part of chief executive Robert Polet's drive to double the firm's turnover by 2012.

Gucci has not said why Ms Facchinetti, who showed the second of her two collections just two weeks ago, had fallen out with Gucci's management. Acrimony and fallouts have been a trademark of life at Gucci over the last few years and could have been a contributory factor in the slide in 2003's earnings to £116.2 million. Mr Ford and former chief executive Domenico De Sole left after their own disagreement with managers at Pinault Printemps Redoute, the French firm which bought out Gucci last year.

Ms Facchinetti, Ms Giannini and men's designer John Ray all worked under Mr Ford in the style teams which piece together the ready-to-wear collections that show twice a year in Milan and pave trends from the top of the fashion set to the shopping mall. Analysts have said that Ms Facchinetti's designs had failed to wow the industry and suggested the shadow of Mr Ford still hung over her.

Ms Giannini, however, has seen her designs lauded. Her pieces have also featured prominently in Gucci's new advertisements; a solitary GG logo shoe or shimmering leather purse replacing the clotheshorse models which dominated the magazines and billboards during Mr Ford's time. Gucci managing director Mark Lee said: "Since joining Gucci more than two years ago, Frida has displayed extraordinary creative talents and leadership qualities. "The enormously positive response to the current collections attests to these exceptional strengths."

www.guccigroup.com
10 March 2005

New CEO for Sergio Rossi

Isabelle Guichot has been appointed the new CEO of Sergio Rossi, the Italian luxury footwear label, by the Gucci Group. She will assume her position at the head of the company at the end of this month, replacing Claudio Paulich who is quitting the company to "pursue and develop his own activities", according to a statement made by the Gucci Group.

Following a career at Richemont SA that spanned 19 years, Guichot joined the Gucci Group at the beginning of 2005.

At Richemont - which currently ranks as the world's second largest luxury concern - she held executive positions at luxury brands like Cartier, Van Cleef & Arpels and Lancel before becoming member of the Richemont board.

Gucci Group President and CEO Robert Polet said: "I am very pleased that Isabelle has accepted this position and I am sure that her extensive experience in brand development and international luxury retailing wll be instrumental in driving profitable growth at Sergio Rossi over the next few years." He also thanked Claudio Paulich "for his contribution to the brand."

Guichot said of her appointment: "I am delighted to become CEO of Sergio Rossi, acknowledged worldwide for the excellent quality and design of its glamorous, made in Italy, products."

The Gucci Group controls a vast array of prestigious brands that includes Gucci, Yves Saint Laurent, Bottega Veneta, YSL Beauté, Boucheron, Sergio Rossi, Bédat & Co., Roger & Gallet, Alexander McQueen, Stella McCartney and Balenciaga.

www.guccigroup.com
7 March 2005

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Facchinetti quits Gucci

After a mere two seasons as head designer for womenswear at Gucci, Alessandra Facchinetti is jumping ship. She leaves her responsibilities to Frida Giannini, who previously headed up the accessories line.

Both women followed in Tom Ford's footsteps at the Italian fashion house. Ford stunned the fashion industry with his departure from Gucci last April.

Gucci announced the departure of Facchinetti, effective immediately. According to the statement released by the company, Facchinetti "is leaving the company after a disagreement with management". She previously worked under Ford for three years before taking over the reigns as womenswear designer. Although she had not received rave reviews for her collections, the general consesus was that any decisions as to her capabalities would be withheld until Ford's legacy could be put to rest.

Meanwhile, Giannini hit the ground running with her accessories collections, which are currently thought to make up 80 per cent of Gucci's sales. Rumours abound that her appointment as Facchinetti's replacement are the result of Fendi's efforts to hire her to revamp its accessories department. Mark Lee, President and Managing Director of the Gucci Division, said of Giannini: "Since joining Gucci more than two years ago, Frida has displayed extraordinary creative talents and leadership qualities. The enormously positive response to the current collections attests to these exceptional strengths." With regard to Facchinetti's departure, he added: "Alessandra is a talented designer and I would like to thank her for her important contribution to Gucci, particularly this past year."

In light of CEO Robert Polet's aim to double the company's revenue over the next seven years to $ 4 billion (GBP 2.85 billion), Giannini has her work cut out for her and will undoubtably feel the pressure of her new position. However, she remains positive. "I'm thrilled and honoured by the opportunity offered to me to expand my creative vision of the Gucci woman."

www.gucci.com
8 March 2005

Gucci stays true to itself

Alessandra Facchinetti is nothing if not true to the Gucci brand. Experimental egg-shaped skirts might be the new darlings of the catwalk, but the core elements of a successful Gucci collection are sexy trousers and fabulous high heels.

Both were on the catwalk yesterday: long, slim, straight trousers with a subtle sheen, and crocodile stiletto boots. High-collared jackets elongated the silhouette even further. Skirts were pencil slim, with a daringly high back split. Moody, after-dark blues - from an oily peacock to deepest inky midnight - gave a rock and roll edge to day wear, while evening wear centred around red-carpet-friendly metallics.

www.gucci.com
24 February 2005

Gucci Reveals Strategy

The new chief executive of Gucci Group yesterday granted its newest acquisitions Stella McCartney, Alexander McQueen and Balenciaga brands six seasons to hit profitability. Robert Polet, unveiling his strategy for the first time since France's Pinault-Printemps-Redoute buying of the group, signalled the company would lose patience with the niche brands if they failed to hit a 2007 deadline. But he ruled out selling them before then.

Mr Polet, did not however, set similar goals for Yves Saint Laurent. The ex-director of Unilever, who criticised the former management duo's "one size fits all" approach to running the group's 10 separate brands, said he did not want to risk missing a third break-even target for YSL.

Polet further intends to double the size of the Gucci brand, which had sales of €1.5bn last year, over the next seven years. He pledged to maintain the label's exclusivity, which fashion industry insiders had feared was under threat, instead driving growth from high-growth categories such as jewellery, watches and men's ready-to-wear. "It's an old brand, but not an old man; it has been rejuvenated," he said.

The group is aiming for compound annual sales growth of 10 per cent at constant currency, which would outstrip the market. The luxury goods market is projected to grow by 5 per cent.

Mr Polet is still attempting to stamp his authority on Gucci Group, which has been rocked by the departure of more than a dozen senior executives during the past year. In an attempt to calm fears that PPR planned to make the business more commercial - and consequently more mass market - he said: "We will not tinker at all with the current positioning of Gucci.

www.gucci.com
15 December 2004

Gucci defections

It was revealed yesterday that two more executives of the luxury goods company Gucci quit the conglomerate. It appears that Group Controller Emilio Foa and Director General of the Group's Swiss Operations, Luca Mayaro, have resigned from their positions.

Since the departure of Domenico de Sole and Tom Ford last April, Gucci has watched a dozen of its executives defect. Until now all the positions have been filled, except for the Chief Executive position at Yves Saint Laurent, which became available when Mark Lee moved to Gucci after Giacomo Santucci's departure in October.

Today Robert Polet is expected to reveal his much anticipated strategic plan at a meeting in London.

www.gucci.com
14 December 2004

New Gucci CEO To Reveal Strategy

Robert Polet, who was once in business selling mass market products, has now been given a high-fashion upgrade, challenged to find out if he can interest the public in $1,000 handbags. Next Tuesday, both the fashion industry, where skepticism about outsiders runs rampant, and corporate investors, with their focus on the bottom line, will be watching intently as Mr. Polet, the new chief executive of the Gucci Group, explains his strategy for the first time since joining the company in July.

He has an ambitious target to announce, executives with knowledge of the plans said. Mr. Polet wants to double the sales of Gucci's own brand-name merchandise in the next seven years. There has been speculation in the fashion industry that Gucci will try to expand its presence by signing more licensing deals and moving to make its goods more affordable. But executives with knowledge of Mr. Polet's plans said he had no intention of aiming Gucci and its other luxury brands at a mass audience.

Mr. Polet is also expected to announce that instead of selling any of Gucci's money-losing brands, at least for now, he will focus on trying to turn them around. These include Stella McCartney, Alexander McQueen and especially, Yves Saint Laurent.

Fixing the unprofitable divisions is certain to be one of Mr. Polet's biggest problems. Except for Gucci, the rest of the company's 10 brands are losing money. The problem with trying to sell them, analysts said, is that most might not fetch more than they cost. And putting a French icon like Yves Saint Laurent on the block would probably raise such hackles that Pinault-Printemps is unlikely to try.

Since taking over from Domenico De Sole - who combined business savvy with the inspired designs of Tom Ford to rescue Gucci from near-bankruptcy in the 1990's - Mr. Polet has kept a low profile, concentrating on meeting with employees and building a business plan. Doubling sales of the Gucci brand on Mr. Polet's timetable would be ambitious, considering past performance. Its sales last year were 1.5 billion euros, down from a peak of about 1.7 billion euros (now $2.27 billion) in 2001.

www.gucci.com
11 December 2004

Gucci's reigning star

When Alessandra Facchinetti replaced Tom Ford at Gucci in April of this year, it quickly became apparent that she was meant to assume to the Gucci throne. "As soon as I started I felt comfortable," she revealed in an interview with Vogue. "I felt the Gucci woman was part of me."

Facchinetti, the daughter of Italian pop star Roby Facchinetti, was appointed director of womenswear at Gucci when Ford was adding YSL Rive Gauche to his portfolio four years ago. Having garnered experience at Miu Miu and Prada, Facchinetti has now taken on the leading role at Gucci with verve.

Relying on the existing Gucci look she is adding a touch of femininity to the designs in an effort to create a look that is more relaxed and confident, and in her own words, "maybe a little vulnerable." Ford had created a Gucci woman who appeared tough and unapproachable, a real femme fatale. His designs were more rock chick than vulnerable woman. However, despite some small changes, Facchinetti has kept a certain of Ford's influence in her designs, which should please his hard core fans.

www.gucci.com
6 December 2004

Gucci Staffer Joins Abercrombie

Another Gucci veteran is joining the management staff at US-led retailer Abercrombie & Fitch Co. Thomas Mendenhall, formerly worldwide director of merchandising for Gucci, is to become senior vice president and general manager of the Albany-based company.

Mendenhall will oversee merchandising for the company's Abercrombie & Fitch division, which sells fashion clothing to a target audience of people in their late teens and early 20s, as well as its Abercrombie division, which is aimed at younger children.

www.gucci.com
>> more Abercrombie & Fitch on FashionUnited
1 November 2004

Gucci Appoints American Managing Director

Gucci on Monday appointed Mark Lee, an American, as president and managing director of its company. Lee, who currently heads the group's second-biggest brand, Yves Saint Laurent, will temporarily be replaced by James McArthur, Gucci Group's executive vice president who oversees some of the group's smaller brands, such as Stella McCartney and Alexander McQueen.

www.gucci.com
26 October 2004

Gucci Group Replaces CEO

Gucci Group, part of French luxury retailer Pinault-Printemps-Redoute (PPR), said it had named its chief executive Robert Polet to replace Giacomo Santucci as head of the Gucci brand. It said in a statement that Santucci's functions as Gucci brand chief executive had been "terminated."

Rumours of Santucci's departure, which follows that of dozens of other executives following PPR's complete acquisition of the Gucci Group last April, led to a fall in PPR shares on the Paris stock exchange on Tuesday. The Gucci Group is the world's third largest luxury enterprise and groups the Gucci, Yves Saint-Laurent, Boucheron, Balaenciago and Bottega Veneta.

www.gucci.com
20 October 2004

All Eyes On Gucci

Gucci's new designer Alessandra Facchinetti was overwhelmed by the ovation for her debut collection in Milan yesterday. Stepping into the spotlight, the 32-year-old looked as slender as the models parading her curvaceous cocktail dresses, glamorous swimwear and intricate jackets. But Facchinetti is no novice in the fashion industry. As creative director of Gucci's womenswear, she is part of the triad that replaced star designer Tom Ford six months ago. Ford himself poached Facchiinetto from Prada and Miu Miu back in 2000.

Ford's design flair, showmanship and PR savvy carried Gucci from being a flailing leather-goods company to the world's third-largest luxury goods conglomerate in the space of a decade. In her 2005 spring-summer collection shown yesterday, Facchinetti gave Gucci a woman's touch with sari-style skirts wrapping the body in cascading layers, the edges left raw.

Slick-haired models went bareback in opulent satin cocktail dresses, heavily contoured around the bodice with thin cross-over back-straps. Studded croc-skin jackets were pared away around the neckline or sectioned and joined with organza. Daywear was missing from the show, with sexy eveningwear being Facchinetti's strong point. Following on from Ford is an impossible position but she rode it well. The look is still strong and sexy, with attitude.

www.gucci.com
2 October 2004

Growth For Gucci

Luxury goods group Gucci has reported it's operating profit in the second quarter to July rose by 142.9 percent to 65 million euros (79.82 million dollars) from 26.8 million euros in the same period of last year. Sales rose by 9.8 percent to 641 million euros and gross margin amounted to 66.0 percent of sales, an increase of 1.7 percentage points. Gucci is currently the third largest luxury group in the world.

www.gucci.com
29 September 2004

Gucci earnings rise

The Italian luxury goods retailer's operating profit more than doubled over the second quarter. Its new owner, Pinault Printemps Redoute (PPR), attributes this surge in profits to higher sales and lower losses from Gucci's Yves Saint Laurent brand.

Earnings before interest and tax amounted to £ 44 million for the three months to July, up from the same period last year. Serge Weinberg, Chairman of PPR, underlined the fact that earnings had gone up since Gucci came PPR's operational control.

Gucci's new chief executive, Richard Poulet, will present the development strategy for PPR's luxury goods division before year's end.

www.gucci.com
28 September 2004

All Eyes On Gucci

After Tom Ford bade his final farewells in February, having built Gucci into one of the most charismatic brands in fashion history, next week all eyes will be on Alessandra Facchinetti, who will unveil her first collection at the helm of the label's womenswear.

While nobody would deny it is a hard act to follow in the footsteps of the Texan titan, the 32-year-old long-haired brunette has excellent credentials -- after beginning her career at Prada and Miu Miu, she became one of Ford's inner circle at Gucci in 2000.

But she will only be replacing him at the ready-to-wear line. Ford's former empire has been broken up with separate designers appointed to menswear and accessories, over which he once presided supreme.

Ford's dramatic departure from the brand to which he had given his life for more than a decade is still felt keenly. Facchinetti, described as "very reserved" but "very determined" by her assistants, will need all that resilience to face the fashionistas when she makes her debut on September 30 with her vision for next summer.

She will be joining a very exclusive club of powerful women in the upper echelons of luxury fashion houses in Milan, epitomised by Miuccia Prada, whose every collection for Prada and her "B" line Miu Miu is scrutinised in the industry as a sure indication of trends to come.

www.gucci.com
24 September 2004

PPR Focuses On Catalogue Business

Pinault-Printemps Redoute's Redcats, PPR's catalogue business, is breaking out of its image as a mail-order retailer and redefining itself as a fashion brand business, Dow Jones Newswires reported.

The division includes France's La Redoute catalogue and Chadwick's in the US and PPR is hoping to boost margins at what is the biggest contributor to operating profit in PPR outside of its luxury Gucci unit.

"It is revolutionary in our market to become focused on the brands," Redcats CEO Thierry Falque-Pierrotin told Dow Jones Newswires.In the first half of 2004, group operating profit surged 11 per cent, while Redcats' was flat. Its operating profit from January and June was EUR102m on EUR2.2bn in sales.

Falque-Pierrotin said the US business, which changed its name from Brylane to Redcats, could account for 40 per cent of total Redcats' sales, compared with 28 per cent this year. But analysts feel there are issues within the business that must be addressed first.

In charge of this problem is Eric Faintreny, who earlier headed Redcat's successful Scandinavian division but became CEO of the US operations in December. His mission includes breathing new life into staid brands giving the home decoration and gift catalogues a bigger role and prioritising Redcats USA's internet presence, Dow Jones said.

The advent of the internet has seen a number of US catalogue firms struggling as they are faced with heavyweight internet operations run by major bricks-and-mortar retailers. But profit potential is high with margins for online ops being higher than those telephone-based orders.

The US team is in charge of developing a new web platform for all of Redcats' international operations that will roll out in March.

7 September 2004

PPR To Focus On Gucci

The new owner of the Gucci luxury goods brand suffered a sales dip in the second quarter. Pinault Printemps Redoute (PPR), which is Europe's biggest non-food retailer, also confirmed it was looking to sell Rexel, its electrical goods distribution business, by the end of the year, in order to put more focus on Gucci.

PPR said it had not yet begun the sell-off process for Rexel, which had sales last year of GBP4.47 billion. But PPR chairman Serge Weinberg said: "Our timeframe remains unchanged. We had in mind a divestment calendar when we indicated that our sell-off timeframe was the end of 2004. Things are unfolding as we foresaw."

Analysts had seen a sale of Rexel taking until the middle of next year, but with its performance improving, the original PPR timescale looks like it will be vindicated.

Over the second quarter, sales at Rexel were up a better-than-expected 5.3 per cent to GBP1.14bn, with underlying growth seen accelerating over the rest of the year.

But over the three-month period, group sales were down to GBP3.75bn, from GBP4bn, but were slightly ahead of consensus estimates for GBP3.74bn. The strength of the euro cost the firm GBP169 million over the quarter, while divestment charges cost it a further GBP908m. Setting that aside, the company saw underlying turnover rise by a healthy 6.2 per cent.

Sales at what the firm refers to as "new PPR" - which excludes Rexel turnover - were up 5.1 per cent to GBP2.6bn.

Mr Weinberg gave no indications for the full year but pointed to significant progress at some of the Gucci group brands.

Gucci faced a series of high-profile departures as PPR took over the firm, but PPR said Gucci group turnover had still increased with a 4.9 per cent rise in the first quarter improving to double- digit growth in April and May.

www.gucci.com
22 July 2004

Gucci Cube

Ice ice baby. This autumn, no cocktail drink is chic enough without ice cubes carved in Gucci's G logo. The Italian fashion house has come up with its most chilling accessory to date - logo'd ice cube makers.

Watch out, too, for gold-plated Louis Vuitton paperclips and Dolce & Gabbana mouse-mats.

www.gucci.com
14 July 2004

Gucci Trial Re-Opened

The Gucci trial, which is to be re-opened this Friday, divides one of Italy's best-known fashion dynasties as Patrizia Reggiani goes on trial for the second time for the murder of her estranged husband, Maurizio Gucci.

Reggiani, 56 - known by the Italian press as the Black Widow - was jailed for 26 years in 1998 for ordering the shooting of Gucci outside his Milan office three years earlier.

Reggiani's daughters Alessandra, 27, and Allegra, 22, have always insisted that their mother is innocent and have persuaded a judge to permit a retrial to test their claim that she was not in command of her mental faculties.

Determined to secure the release of Reggiani who, they say, is dying of a brain disease, they plan to take the stand in her defence at the trial, which begins on Friday.

www.gucci.com
7 July 2004

Top Manager Leaves Gucci

Top managers at Gucci are leaving the Italian fashion house after the takeover by PPR and the departures of Tom Ford and Domenico de Sole. Newly added to the defecting list is Gian Giacomo Ferraris, formerly head of worldwide clothing operations for the Group, who has joined the Prada Group as the CEO of Jil Sander.

www.gucci.com
7 June 2004

Gucci Murder Case To Be Re-opened

A re-trial of the Maurizio Gucci murder case, the Florentine fashion house heir who was apparently killed by his estranged wife Patrizia Reggiani, has been demanded by an Italian court.

Reggiani was found guilty in 1998 of ordering the murder of her estranged husband, although she has never confessed to her charges and denies the commissioning of the murder.

Maurizio Gucci, grandson of the founder of the family business empire, was gunned down in a gangland-style shooting outside his Milan office in March 1995.

www.gucci.com
28 May 2004

PPR To Delist Gucci From Exchanges

French retail group Pinault Printemps Redoute is planning to delist Gucci from the Amsterdam and New York exchanges as it becomes a division within Europe's biggest non-food retailer, with interests stretching form French department stores to an African trading company.

www.gucci.com
4 May 2004

Euronext Suspends Trading in Gucci Today

According to Reuters, Bourse operator Euronext stated today the shares in luxury group Gucci NV are to be suspended.

Euronext stated that the suspension would be for the remainder of Thursday's session due to the "end of a subscription period," and that it would release more details later.

www.gucci.com
29 April 2004

Gucci Announces De Sole's Successor

Italian luxury group Gucci have announced Robert Polet will be heading the eponymous retailer as the newly appointed chief executive to succeed Domenico de Sole. Polet joins the group after a 26-year career with consumer giant Unilever's frozen foods division.

After the departure of de Sole and Tom Ford after the full buyout of Gucci by French retail group Pinault Printemps Redoute (PPR), Polet will join the board of PPR as was stated by its chairman, Serge Weinberg.

Weinberg stated: "We are thrilled about Robert's appointment. His international background, his broad experience in developing brands, his entrepreneurial and managerial talents and his ability to be both a leader and team player make him an ideal choice to run Gucci Group."

Polet said: "I'm very honoured and excited to have been named to run Gucci Group. The different brands within Gucci Group are iconic names in the world of fashion and luxury goods. I consider it a once-in-a-lifetime opportunity to be entrusted with their development. It's a great challenge to succeed Domenico De Sole, and I'm greatly looking forward to working with the wonderfully talented people of Gucci Group to write a new chapter in its brilliant story."

PPR has reported strong growth across its retail operations, ranging from Gucci to the Fnac books and music chain. Group sales of EUR5,759.9m were up 7.1 per cent, and up by 10.4 per cent outside the France, where consumer spending has been slow. PPR's UK home shopping brands, which is operated by La Redoute, saw 1.5 per cent growth on a comparable basis.

www.gucci.com
21 April 2004

Gucci Fashions Up iPod

Gucci is now offering a designer carrying case for Apple's popular iPod digital music player. The logo'd case, which comes in Gucci's signature colours beige and ebony or green and red costs approximately GBP140. In The States the fashionable carrying cases have almost sold out.

One question, though: the iPod design looks great as it is. Why hide its innovative design with double G logo fabric?

www.gucci.com
21 April 2004

Key Figures To Leave Gucci

According to the Financial Times, the Gucci group over the next few weeks will see a new wave of, "departures of key figures." This in short succession after the highly publicised departures of Domenico De Sole and Tom Ford, respectively managing director and creative director.

In a stream of losing its creative talent, the most important new departure will be that of Toshiaki Tashiro, who currently is the head of Japanese retail operations. Japan being one of the biggest markets for the Group.

Also to leave are Renato Ricci, the head of group human resources and in a further blow, Lisa Schiek, who as worldwide director of communications controlled the personal image of Ford. The global director of group corporate communications, Tomaso Galli, has also resigned.

The departures come at a critical time for Gucci, which is being bought by France's Pinault Printemps Redoute retail company for $8.6 billion.

www.gucci.com
15 April 2004

Gucci Shares Buyout By PPR

The remaining shareholders of the Gucci group have been offered to sell their shares to French retailer Pinault-Printemps-Redoute, enabling PPR to go ahead with the long-awaited USD8.8 billion buyout of the group. Gucci's investors have until April 2nd to sell their shares to PPR. The offer is due to expire on the April 29.

PPR currently owns 67.58 percent of Gucci, and the offer to buy the remaining shares is part of a 2001 agreement with LVMH Moet Hennessy Louis Vuitton. Gucci shares traded on the New York Stock Exchange closed yesterday down 3 cents, or 0.04 percent, at USD85.47.

The acquisition of Gucci for PPR has not come without a price, and the steady takeover created great turmoil without the company. The least of which saw Domenico de Sole and Tom Ford, thte chief executive and creative director, leave after failing to reach agreement over the future of the brand.

A new design team at Gucci was recently appointed by PPR, opting for a less high-profile but secure team of in-house designers to replace Ford at the Gucci brand, while Stefano Pilati was named creative director of Yves Saint Laurent, also a part of the Gucci Group.

www.gucci.com
24 March 2004

Gucci Announces New Designers

Gucci Group NV announced Thursday an in-house team of four designers will replace creative director Tom Ford at its Gucci and Yves Saint Laurent labels.

Alessandra Facchinetti, John Ray and Frida Giannini - three of Ford's assistants - will design Gucci's womenswear, menswear and accessories, the luxury goods maker said in a statement.

Stefano Pilati will succeed Ford at YSL. Speculation over Ford's replacements has engulfed the fashion world since the American designer announced his departure in November.

Ford, who presented his final collection for YSL on Sunday, resigned at the same time as Gucci Chief Executive Domenico De Sole, whose replacement hasn't yet been named. Ford gave his final show for Gucci on Feb. 25 in Milan.

12 March 2004
www.gucci.com

Gucci: Remember The Time

Tom Ford's last collection at Gucci was a trip down memory lane. After a decade of reigning as one of the most successful designers in fashion; almost single-handedly turning a flailing Florentine fashion house into one of the most covetable brands of the nineties and noughties, Ford brought back the looks that have bared his trademark sexiness for the past decade. Whoever is to take over the helm at Gucci will have a difficult journey ahead. The debate over designer versus brand, the who makes who, will be evident in the next few seasons when the new creative director sends an all-new Gucci collection down the spring/summer catwalks.

Ford's talent should not be underestimated as merely designing collections for an upmarket Italian fashion house. His propensity for image-making, manifesting itself into everything from cleverly re-inventing the logo to Gucci's edgy advertising, made the brand a household name on a global scale. Most of all, it made the house money, turning the Gucci Group into one of the most profitable luxury groups since LVMH.

Even now, the images we recall as Gucci have left a permanent imprint on our fashion minds. From the white jersey cut-out dress with silver G buckle to the navy velvet bootleg trousers and logo'd accessories, they are all unmistakably Tom Ford for Gucci. His tailored sexiness made women the world over aspire to be part of this image, which, from buying the shoes, the bags, the ready to wear, the sunglasses and the perfume, created nothing short of a Gucci mania.

With nostalgia in the air at the show and after-party (those of us lucky enough to have been invited where showered with rose petals at the stroke of midnight), boutiques the world over are expecting a surge in sales for autumn/winter, the last collection under Tom's reign. Everything you own already will be considered vintage Gucci, and you will not soon forget the images of good times and good looks.

Don-Alvin Adegeest
1 March 2004

Gucci Battle: Designer vs Brand

On the one hand is flamboyant designer Tom Ford, 42, who is credited with taking fashion house Gucci from the verge of bankruptcy to being one of the world's most powerful luxury goods brands. On the other is Serge Weinberg, 53, the chief executive of Pinault Printemps Redoute, the French retailer that is taking control of Gucci - without creative director Ford and chief executive Domenico De Sole.

Ford's decision to walk following reported disagreements over 'money and control' led to a flurry of headlines in the Press. They loved Ford's looks and glamour and delighted in his belief that Gucci celebrated 'hedonism, luxury and sex'.

Weinberg, however, is precise and measured. Of Ford's departure, he will only say dryly: 'We accepted the possible consequences after a risk valuation and decided to take that risk.'

The acquisition will plunge PPR headlong into the debate over whether it is the designer or the brand that matters most; whether a large conglomerate has the ability to manage a stable of designer 'luvvies' with explosive egos.

Classic brands such as Versace, Dior and Coco Chanel have prospered down the years with a succession of designers. But just because a designer has a powerful image does not mean he or she will be able to adapt to a big name label - ask John Galliano, Alexander McQueen and Julien McDonald, who all struggled at Givenchy.

What many see as counting in Weinberg's favour is the success of Burberry, where the entire business has been revitalised by Rose Marie Bravo while creative director Christopher Bailey has remained in the background, allowing the fashion house itself to take the limelight.

www.gucci.com
9 february 2004

Gucci Sees Growth

The Gucci division saw retail sales growth of 11.4 per cent in November, following 12 per cent growth in the third quarter. Sales growth has accelerated to 21.6 per cent in the first two weeks of December. However, losses at Yves Saint Laurent fashion widened to €20.7m.

Total sales rose 12.8 per cent to €695m across the third quarter. Chief executive Domenico de Sole said: "Our fourth-quarter performance continues to be outstanding, and I believe that we will achieve excellent results for the remainder of the year.

"The iconic Chain horse-bit handbag as well as the spectacular fall ready-to-wear collection have been driving traffic into the Gucci stores and generating strong sales worldwide."

20 December 2003
www.gucci.com

Gucci Gets Credit

Luxury goods group Gucci said on today it had obtained a 460 million euro multi-currency revolving credit facility from 15 institutional banks for general purposes and to cut debt.

www.gucci.com
2 December 2003

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