Gucci Group expects to outgrow competitors

Gucci Group, according to Reuters, expects it can outpace the growth of its rivals and the luxury sector. When asked by the French publication Les Echos if Gucci was looking at fashion groups like Italy 's Armani, Chief Executive Robert Polet replied: "I prefer to focus on what I master. There's enough we can do with our current portfolio to continue to grow faster than our competitors and the market."

The future of luxury was "assured", he added, referring to sustained growth in China -- where Gucci aims open four Gucci shops between now and the end of 2007 -- India , Russia , the United States . Asia represents almost 60 percent of Gucci's investments. Polet did not exclude moving production of some of the group's labels to countries where labour is cheaper than in Europe . "We don't have any dogmas," he said, not specifying which labels.

www.guccigroup.com
21 May 2007

New executives at Balenciaga

New managers are being put in place at prestigious Gucci Group fashion houses. A new head at Balenciaga follows the departure of executive vice-president and director of strategy and acquisitions James McArthur. Sergio Rossi's CEO Isabelle Guichot now takes the helm at the label designed by Nicolas Ghesquière. She will also continue at the luxury footwear label until a permanent successor is named in the next few months.

McArthur had been president and CEO of Balenciaga and also oversaw Alexander McQueen and Stella McCartney. Gucci said in a statement that he "has decided to leave the group," but gave no details of his destination. He officially resigns this Friday "having effected a smooth transition of his various roles in the past two months".

Alexis Babeau, who is Gucci Group's CFO and executive vice-president, will add strategy and acquisitions to his role as a result. Group CEO Robert Polet said: "We are sorry to see James leave. He has contributed greatly to assembling the excellent portfolio of brands that Gucci Group has built, to helping to develop the Stella McCartney, Alexander McQueen and Balenciaga businesses, and in particular in leading Balenciaga to profitability two years ahead of the group's schedule. We wish him the very best as he now turns to new challenges."

www.guccigroup.com
11 May 2007

Gucci goes for winter glamour

Gucci in Milan showcased their AW07 men's collection in what looked like a luxury ski lodge housed somewhere in the decadent Swiss Alps, or Colorado Rockies. Featuring an elegant fireplace built into a massive chimney column in an aged gray stone - the same used on the catwalk of this Cortina d'Ampezzo meets Gstaad-inspired collection. Unlike the heave winds that swept Europe on Wednesday, no winter breeze blew through the Gucci showspace, but the clothes were all ideal for a December gale.

From the astrakhan duffle coat to the Taiga green woodsman jacket, or the club-going padded ski pants and mountaineer's boot, these duds were made for chilly climes. Even the evening looks were made for sub-freezing temperatures - one tuxedo came in burgundy Persian lamb. "I felt winter jet set was right for today, even if the weather has not cooperated," Giannini told FWD, referring to the snow-less winter Europe is having. Using a revamped version of a 1950s artisan's crest, originally trademarked by Guccio Gucci, now made its way onto weekend bags, prints and accessories.

www.gucci.com
19 January 2007

Gucci launches men's fragrance

Gucci is to launch a new men's fragrance called Gucci Pour Homme II. This will be the first Gucci fragrance since a new licensing agreement was signed with Procter & Gamble Prestige Products last May. “Fragrances are Gucci's next great opportunity,” Gucci president and CEO Mark Lee stated. “We are aiming to enter the global top five prestige fragrance in the coming years. We want to become leaders in the category.”

All creative aspects of the new product were closely supervised by Gucci creative director Frida Giannini. “The fragrance was designed with the ‘modern Italian playboy' in mind. Someone confident and relaxed who appreciates luxury and traditional craftsmanship,” comments P&G Beauty vice president Markus Strobel. “We will first launch a men's fragrance because we think there is a strong aspiration among men for the brand,” he adds. The advertising campaign was shot by Mert Alas and Marcus Pigott.

The fragrance comes in a heavy glass cube topped with a golden metallic hand-brushed cap to give an extra feeling of luxury and the light blue fragrance is a fresh, spicy, woody composition. Gucci Pour Homme II will launch early March 2007 in the US in 300 doors before beginning its worldwide rollout.

www.gucci.com
18 December 2006

Gucci gives away logoed iPods

For the opening of its new flagship in Tokyo , Gucci is giving away 1,100 iPods featuring is famous logo. The lucky recipients are press and special guests of the store's unveiling on 1 November. They will be able to view a press release about the store's opening in the Ginza district on the iPod, including a virtual mini movie showing the progress on the store and images of the men's and women's spring-summer 2007 shows and of special accessories designed especially for the opening by Frida Giannini. Furthermore, they will be able to download custom-made playlists by Giannini and Mary J. Blige, who will give a performance the night after the opening.

The special iPod, which is held in a silver-coloured La Pelle Guccissima holder, will be issued exclusively at the event. The collaboration between Gucci and Apple is limited to the Tokyo opening. “This is a breakthrough experience we are providing to the press and VIP customers for our Ginza opening and reinforces the commitment to creativity and innovation we have at Gucci,” said chief executive Mark Lee, who will attend the opening together with Giannini.

www.gucci.com
25 October 2006

Gucci turns 85

Gucci celebrated 85 years in the business on Thursday with the launch of a new book, Gucci by Gucci. It explores the history of the Italian brand, which began as a purveyor of leather goods. The label has been a favourite of stylish women like Jackie Onassis, Audrey Hepburn and Princess Diana. Just when the brand appeared to be slowly disappearing from the fashion radar, Tom Ford turned it into the most desirable must-have in the nineties. His use of raw sexual, strong silhouettes and bold imagery in provocative ad campaigns had the world sitting on the edge of its seat. Currently headed up by Frida Giannini, Gucci continues to thrive with a more constrained image. For the show in Milan , she sent models down the catwalk in clothes with a distinct 60s vibe in a bold, graphic palette of predominantly black, white, purple and red. If Gucci has anything to say about tunics and miniskirts are back with a vengeance.

www.gucci.com
29 September 2006

Chloé's Mispelaere to join Gucci

Yvan Mispelaere's is said to be joining Gucci as design director, working under creative director Frida Giannini. Mispelaere is currently part of the Chloé design team that gained fame under Phoebe Philo and continued without the designer when she resigned in January. He designed the last collection together with colleagues Blue Farrier and Adrian Appiolazza. He confirmed to WWD that he will join Gucci as soon as he has completed his stint at Chloé. A spokesman for Gucci said the company never comments on rumours. Ralph Toledano, Chloé's chairman and chief executive, also declined to comment on the “rumours” but said that the house would appoint a new creative director after its show in Paris .

Chloé sales more than doubled last year under creative direction of Philo. Despite her departure, growth at the fashion house continued “beyond expectations,” said parent company Richemont. Mispelaere has previously worked for Prada in Milan and Valentino in Rome and was creative director of Louis Féraud.

www.chloe.com
www.gucci.com
19 September 2006

Bedat possibly quitting Gucci

Rumour has it that Christian Bedat, chief executive and creative director of the same-name firm he created with his mother, is leaving Gucci Group. Bedat, who founded Bedat & Co. in 1996 and has recently also designed watches for Gucci and Boucheron, is said to disagree with the development of his firm under Gucci leadership. According to WWD, sources have even gone so far as to say that Bedat might resign from his post at the firm. A spokeswoman for Gucci said: “We can confirm that the rumour exists, but we never comment on rumours.”

Gucci Group acquired 85 percent of Bedat in 2000 and the maker of elegant timepieces is now one of the smaller labels owned by the group, which include Boucheron, Balenciaga, Alexander McQueen and Stella McCartney. This summer, a reorganisation of the group's watch business took place, placing Gucci brand's chief executive Mark Lee at its helm. The company said the current chief executive of the Gucci Group watch business, Jacques-Philippe Auriol, will leave when his contract expires at the end of the year. The group also said it was considering a new organisational structure for the Bedat and Boucheron brands.

www.guccigroup.com
19 September 2006

Gucci delays flight

A passenger was escorted off a Tokyo-bound plane in Hong Kong after she refused to put her Gucci handbag under the seat, disrupting the flight for more than an hour, a report said on Monday. The Cathay Pacific plane was ready to take off but was forced to stop on the runway because the young passenger would not listen to a flight attendant's request, the Apple Daily reported. After 15 minutes of argument, police officers, airport security guards and airline officials were called in to resolve the situation, but she still refused to give in, it said.

After an officer threatened to arrest her, the unnamed passenger finally agreed to leave the plane with her Gucci handbag, much to the delight of her angry fellow passengers who clapped as she was escorted off. "It's not my fault, it was them who were too stubborn," she shouted as she was leaving. The incident, captured on camera by another passenger and published on the internet, resulted in a delay of the flight of more than an hour.

2 August 2006

Happy birthday Gucci

The venerable House of Gucci turns 85 this year with a number of celebrations scheduled around the globe. Guccio Gucci originally started a saddle making business and added leather goods in the 1920's. He opened his first retail store shop on the Via Condotti in Rome in 1938.

Gucci soon became renowned for its luggage, ties, shoes, and its famous bamboo handle handbags. It enjoyed enormous success worldwide in the 50's and 60's but started to languish in the 80's largely due to family infighting and bad business decisions. The troubled company was eventually sold to Arab interests. However things turned around in the 90's when Tom Ford was brought in as style director. Today Gucci is owned by French retailer PPR, which also owns Balenciaga, Yves Saint Laurent, Stella McCartney, Alexander McQueen and others.

15 July 2006

Gucci brand boosts group results

The Gucci Group saw sales in the first quarter soar 19 percent to €846.8 million, thanks largely to “excellent sales” at the Gucci brand. The brand's sales exploded in the Asia-Pacific region, with an increase of 18.2 percent to €508.3 million in the quarter ended 31 March.

“This quarter is definitely reflecting the good momentum of every quarter last year, the improvement of the economic environment and our growing international activities,” said PPR chief financial officer Jean-Francois Paulus during a conference call. “We are very satisfied with these figures.” Sales at parent company PPR rose 7.9 percent to €4.43 billion. He also said that the group's leather goods and fashion businesses had jumped 25 percent, “outperforming key competitors”.

Gucci achieved double-digit growth in all geographic areas. Sales in the Asia-Pacific region leapt 34.5 percent, North America saw gains of 21.1 percent and Europe gained 16.7 percent.

Despite mixed reviews for designer Frida Giannini's spring/summer 2006 collection, ready-to-wear sales jumped 24.3 percent to €37.9 million, outperforming the brand's other product categories. Leather goods sales rose 20.2 percent to €294.3 million, while shoe sales increased 21.2 percent to €70.2 million. Meanwhile, wholesale orders surged 22 percent, representing 29 percent of total sales. Only Gucci watch sales were said to be “disappointing”.

www.gucci.com
2 May 2006

Gucci foresees promising 2006

After a record year in 2005, Gucci chief executive Mark Lee is bullish about 2006. In an interview with Women's Wear Daily, he said that the company “had the best year in the history of the company, so we are quite proud and happy about that”. In 2005, Gucci brand's recurring operating income rose 14.7 percent to €485 million and sales jumped 13.6 percent to €1.81 billion. At constant currency rates, sales would have grown 18 percent.

The brand's ready-to-wear sales rose 16 percent in the fourth quarter, underscoring the success of creative director Frida Giannini's cruise collection. However, pressure is on to grow the brand and the ready-to-wear business. Group chief executive Robert Polet has said he wants to double the size of the brand within the next seven years. “There's a lot of potential for growth” said Lee. “I would really consider that both women's and men's ready-to-wear are underdeveloped and under-penetrated and they've been growing below the curve of Gucci.”

Lee added that the accessories business is growing rapidly. “It is unusual that your biggest categories are growing the fastest,” he said. However, he now expects ready-to-wear sales to pick up and said that he is confident in Giannini's ability to take over designing the men's wear collection, following her success in men's accessories.

“The decision I took to put Frida in charge of women's already a year ago, which, at that point, gave her 95 percent of the brand, was my own statement on (the team approach),” said Lee. “I definitely needed to have the women's ready-to-wear linked to the women's accessories. She's quite exceptional. It's a creative job on the one side and it's also a big management job. She has 40 people working for her.”

Lee said that every major geographic region had realized double-digit sales growth. Sales in Japan rose 11 percent, while in Europe they grew 14 percent. North American sales climbed 24.9 percent, while Asian sales excluding Japan soared 28.5 percent.

In terms of further growth, Lee said that Gucci is opening a new store concept in the luxury Hong Kong mall The Landmark in October. With four floors, the new flagship will be the brand's biggest store in the Asia-Pacific region. Gucci will also open another three stores in mainland China this year and in November the brand will open a new four-story flagship store in the Ginza shopping district in Tokyo.

www.gucci.com
20 March 2006

Gucci great for disco

Gucci, next season, is all about disco and Saturday Nigh Fever. The collection has become much softer and more feminine under the helm of designer Frida Giannini and will inspire dancefloor divas back to the days of Studio 54. Catwalk models shimmied in a palette of gold, violet and plum and wore silky draped jersey dresses in mini or maxi styles. Gold lamé suits and purple floorlength chiffon dresses are every party girl's dream outfits. Cover them up with fur coats and long-belted styles for a bit of spotlight glamour. Not recommended for shy introverts.

Frida Giannini alone at the top

The Gucci Group yesterday announced the resignation of menswear designer John Ray, who had taken over in March of last year. In a company statement Mark Lee, president and CEO of Gucci, thanked Ray for his “important contribution to the success of the Gucci Men's Ready to Wear category”. He also announced that womenswear and accessories designer Frida Giannini will replace him. According to WWD, Ray is leaving the firm for personal reasons, leaving Giannini as the sole creative designer of Gucci.

Giannini took over womenswear from Alessandra Facchinetti after one season, having taken on accessories upon Tom Ford's departure in March 2004. She has received mixed reviews for her first womenswear collection, but has managed to woo back many big Hollywood names to the brand. This season the brand will hold two fashion shows during Milan Fashion Week to accommodate everyone who wants to see the show.

www.gucci.com
1 February 2006

Soft focus for Gucci

Gucci's new spring/summer advertising features Northern European models Freja Beja and Iselin , as is a move away from Tom Ford's in-your-face sex appeal. The new ads are not the steamy poses we have come to expect from the Italian luxury brand, rather they are reportage-style images with a hint of seventies nostalgia. Debuting in the January issues of Italian Vogue and Uomo vogue, Frida Giannini, Gucci's new creative director, is taking the brand in a new direction.

“The most important message that I wanted to give with this ad campaign was optimism. I wanted the new Gucci woman to express this through light, color and a new way of being real and natural," said Giannini in a recent interview. "It's younger and fresher, while still the confident sexy Gucci girl you know."

29 December 2005

Gucci says goodbye to Sergio Rossi founder

Gucci Group last week said shoe brand Sergio Rossi's founder has left the company, a decision the two parties agreed upon when Gucci took full control of Sergio Rossi last year. Italian Sergio Rossi founded the company in 1950s. The Gucci Group took an initial 70% stake in 1999 and then increased it to 100% last year.

Gucci Group Chief Executive Robert Polet has set a deadline of 2007 for unprofitable brands like Sergio Rossi and fashion label Stella McCartney to breakeven. "The Sergio Rossi brand has all the required assets to achieve its targets," Sergio Rossi chief executive Isabelle Guichot said in a statement.

7 November 2005

Gucci to move investment to Asia

In three years, some 60 percent of Gucci Group's investments will be located in Asia, according to the group's chief executive Robert Polet. A "new concept" of shops will be "unveiled in late 2006" in Tokyo and Hong Kong, Polet promises in an interview with Les Echos newspaper, with 12 shops opening in the region in the coming 36 months. "Continental China is becoming a vast area of development" while the Asia Pacific region now accounts for 21 per cent of the group's sales, the former Unilever executive explained.

Opportunities presented by organic growth in the sector would also be exploited, Polet said. He is banking on "growth of five per cent a year" in the luxury goods market, although he believes the group can "grow a little faster than the market". If his market predictions are borne out that means annual growth of seven per cent for the group.

Under a seven-year strategic plan launched last December, the Gucci brand is to be doubled in size with gross margin increased to 70 per cent and spending on marketing and communications rising by 20 per cent in the first three years. Gucci Group, a subsidiary of Pinault Printemps Redoute, is not looking to reposition its top-end brand, Polet maintains, despite the launch in July of a more expensive line of leather goods. "It's more a question of responding to a major trend in the luxury sector," he said.

The period of flux heralded by the departure of Tom Ford and Domenico de Sole had ended six months ago, according to Polet. "The way we manage the group has completely changed because we have gone from a partnership between a chief executive and an artistic director to a group of 20 directors," he added.

www.gucci.com
17 September 2005

Gucci performs well for PPR

Gucci has delivered on its promise of a boost in profits to new owner Pinault Printemps Redoute (PPR). According to recent financial reports, the French luxury goods retailer boasted a 49 per cent rise in first-half profits, after a strong sales period for Gucci and fellow couture designer Bottega Veneta.

Known for its handbags and shoes, Gucci has seen a steady increase in turnover since PPR took it over early last year. Other luxury goods brands also performed well in the six months to June 30, though the group's retail arm reported a drop in sales due to slow French spending. The group, which also owns British brands Stella McCartney and Alexander McQueen, said first-half net profit came to some £104.1 million - beating forecasts.

PPR chairman and chief executive François-Henri Pinault said: "Thanks to its positioning on two activities - the rapidly growing global luxury goods universe, and stable, mature retail markets - the group enjoys a higher profitability profile than that of the markets in which it participates. "Luxury goods posted excellent first-half results, notably at Gucci and Bottega Veneta." He added: "The PPR Group is well positioned to improve its performance, as the trends of July and August clearly indicate."

In the luxury sector, operating income leapt 76 per cent to around £72.7m with the margin doubling to eight per cent, although PPR warned that the higher comparative base in the second half might temper the growth rate. French luxury goods companies have shrugged off the impacts of a weaker dollar, global political unrest and the threatened resurgence of avian flu to show strong performance in the first half.

On Wednesday, the world's largest luxury goods company LVMH posted an 11 per cent rise in operating profit and stuck to its 2005 earnings goals despite adverse currency effects and a provision for the closure of its flagship Parisian store, Samaritaine.

11 September 2005

Movado sues Gucci Group

Watchmaker and retailgroup Movado LLC and Movado Group Inc has filed a lawsuit against the Gucci Group. It alleges that the the luxury goods concern sold watches that infringed on the trademark of Movado's Museum line of watches. The suit cites six allegations, including trademark infringement, unfair competition, trademark dilution and injury to business reputation, and deceptive trade practices.

In the lawsuit Movado claims that its Museum line watches and timepieces have a unique look. There are no hour markes on the faces and feature a single dot on the 12 o'clock position. According to court documents, the dial design was chosen in 1960 by the Museum of Modern Art in New York for its permanent collection.

Movado claims that Gucci sold watches that were “confusingly similar in appearance to the Museum Wristwatches” at stores such as high end department store Nordstrom. The suit says that Gucci knowingly used the design with the intent to “misappropriate Movado's goodwill”. Movado has asked for Gucci to pay undisclosed monetary damges, halt the sale of all those products and recall any products that currently infringes on its trademarks. Gucci America was not available for comment.

www.movado.com
9 August 2005

Asia Fuels Luxury Group Profits For Gucci

Gucci Group owner PPR SA, said sales advanced 4 percent in the second quarter, buoyed by demand for the most expensive fashions and accessories in Asia . Sales rose to 3.99 billion euros from 3.83 billion euros a year earlier, the Paris-based company said today. Seven analysts surveyed by Bloomberg sales of 3.92 billion euros, their median estimate shows.

PPR and other luxury-goods makers such as LVMH Moet Hennessy Louis Vuitton SA, the world's biggest, are benefiting as economic growth of 9 percent in China creates millionaires and generates demand across Asia . PPR Chief Executive Francois-Henri Pinault aims to increase foreign revenue as rising unemployment increasingly prompts French consumers to spend less.

These figures ``underscore the relevance of our strategic choices,'' Pinault said in the statement. He described the economic environment as ``difficult.'' PPR shares have gained 14 percent this year, partly on optimism about increasing demand for luxury goods. The stock has added 2.5 percent since July 25, when LVMH reported a 10 percent gain in quarterly sales. Quarterly sales at Gucci Group rose 13 percent to 639 million euros, or 18 percent when adjusted to remove the effect of exchange rates. Analysts surveyed by Bloomberg predicted growth of 13 percent when adjusted on that basis.

The Gucci brand itself had a 13 percent increase in sales in the second quarter to 378.6 million euros, helped by demand for Hasler, Punch and Creole handbags. Asia and North America led the gains for the luxury unit, with sales advancing 31 percent and 22 percent respectively. Its European sales rose more than 10 percent.

28 July 2005

Gucci Appoints New CEO

The Gucci Group have appointed Mark Lee to be its chief executive officer on Tuesday, making official what has been his de facto role since last November. Lee, 42, moved to the Gucci brand as president and managing director last Nov. 2 after the ouster of Giacomo Santucci, who has joined Dolce & Gabbana as commercial, licenses and retail director. Lee had been ceo of Gucci Group's Yves Saint Laurent fashion house.

Lee joined Gucci in 1996 and has worked in different capacities there and at YSL. The last nine months have been particularly eventful at Gucci, as Lee oversaw the promotion of Frida Giannini to creative director for women's ready-to-wear, which meant the exit of Alessandra Facchinetti only two weeks after her second runway show in the post-Tom Ford era.

A formidable merchant, Lee oversaw with Giannini the recent launch at retail of La Pelle Guccissima, a range of leather goods and accessories intended to boost a core category based on hard-to-counterfeit relief and embossing techniques. Gucci Group will report its second-quarter sales on July 28 in tandem with parent PPR. In the first quarter, strong sales of leather goods propelled sales at the Italian company up 14.2 percent to 429.9 million euros, or $564.2 million at average exchange rates.

www.gucci.com
19 July 2005

Gucci girl forever sexy

Yesterday the new creative director of womenswear for Gucci, Frida Giannini, revealed her first solo effort. The new cruise collection for 2006 was, by all accounts, a hit and proved that the Gucci girl remains sexy.

The show was heald at the Gagosian Gallery in New York in the searing heat, but the floaty dresses kept the models looking cool and gorgeous. The look and the ambience of the show was reminiscent of a luxury yachting cruise.

"She is a woman that enjoys life and has access to amazing locations and food," bride-to-be Giannini told FashionWeekDaily. "I see this woman on a cruise in the Mediterranean sea, enjoying her life. She wakes up in the morning and steps out with her diamond studded sandals in hand, ready for the day." Ah yes, just another average day in the life of the super-rich Gucci clientele.

Giannini looked to the history of the fashion house for inspiration. She included the famous logo, the horse-bit and the Jackie-O brand of glamour and combined it with the look of the Amalfi Coast in the 60s. "I worked with a lot of the Gucci history in this collection. The silhouette, though, is new. We used a lot of short dresses and flat sandals for the evening, which is quite unusual for us. But at the same time, we played with the fabrics and prints; I think the past of this brand is very important to never forget," said Giannini.

The look of the first half of the collection was nautical, while the second half called on the Positano look, inspired by local craft traditions. Accessories also played a big part in the new colleciton and the editors at the show raved over them. "I loved them," Vogue senior accessories editor Danya Unterhalter said of the shoes, bags and jewellery. "I thought the chain black sandals and the classic yet eclectic Jackie-O shape that's being redone was divine. It was a refreshing resort fashion show." Time Style & Design editor Kate Betts said: "I think Frida made a very good first impression. It was very item-y, which is what resort should be."

"I'm quite happy," Giannini said of her first collection and her future at Gucci "We're seeing a new Gucci woman emerge. So far this is only a glimpse."

www.gucci.com
16 June 2005

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