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Buono, Gucci

Excellent financial quarter reported by luxury brand group

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Gucci Group N.V., based in Amsterdam but operating out of Milan, announced that its group third quarter net revenue was up 101 percent for the third quarter ended Oct. 31, 2000, to $615 million.

Among its divisions, the Gucci Division had a net revenue increase of 22.6 percent, while sales in directly operated stores rose 29.4 percent. The New York flagship, which reopened on September 4, posted growth in excess of 30 percent in the months of September and October. Retail sales growth remained strong in all major Asian markets in the quarter: plus 31 percent in Japan (10 percent in constant currency); plus 20 percent in Hong Kong; and plus 43 percent in Korea.

Yves Saint Laurent signed leases for new directly operated stores to be opened in 2001 in Costa Mesa, Calif., Hong Kong and four locations in Japan. The division also finalized refurbishment and expansion plans for the New York Madison Avenue flagship and will debut its new concept store in the Bellagio complex in Las Vegas this week. Yves Saint Laurent assumed control of its franchise operation in Japan on December 1, and expects to have approximately 30 directly operated stores at the end of the fiscal year.

“I am delighted with Gucci Group's third quarter performance,” said Domenico De Sole, president and ceo of the Gucci Group. “Among the recent highlights, which will provide future growth in revenues and profits, were the reopening of expanded flagship stores in New York, Rome and Paris and the acquisition of the businesses of our licensee for women's ready-to-wear and our Japanese watch distributor. In addition, excellent progress has been made in integrating our new brands. Tom Ford's debuted his first Yves Saint Laurent collection in October. It will be in the stores in February 2001, supported by a strong advertising campaign.

“In 2001, we expect double-digit revenue growth at the Gucci Division and high single-digit revenue growth at YSL Beaute, led by the new YSL fragrance to be introduced in Autumn 2001. We will continue to reorganize Yves Saint Laurent on the proven Gucci model of control of design, production, promotion and distribution. We expect a significant improvement in Yves Saint Laurent operating margin in 2002 as our directly operated store roll-out plans are implemented. We have just added two exciting new brands to our Group – Alexander McQueen and Bedat & Co., whose founders Simone and Christian Bedat have hadextraordinary success in the watch industry.”

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Through the Gucci, Yves Saint Laurent, Sergio Rossi and Boucheron brands, The Gucci Group designs, produces and distributes personal luxury goods, including ready to wear, handbags, luggage, small leather goods, shoes, timepieces, jewelry, ties and scarves, eyewear, perfume, cosmetics and skincare products. The Group directly operates stores in major markets throughout the world and wholesales products through franchise stores, duty free boutiques and leading department and specialty stores.

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