Gucci Coup

The Gucci Group of luxury brands and designer goods announced overall solid first quarter results for its first quarter ending April 30, 2001.

The company said that quarterly revenues for Gucci Group were up 5.5 percent, and up 11.5 percent for its Gucci Division. The division's May retail sales were up 16 percent “on a constant currency basis.”

“I am very pleased with our performance this quarter,” said Domenico De Sole, president and ceo of the Italian company (based in Amsterdam for tax and other business purposes), “which reflects solid results for the Group and record profits for the Gucci Division. We have made tremendous progress in our development as a multi-brand luxury group, adding new brands like Bottega Veneta, entering into joint ventures with the outstanding young designers Alexander McQueen and Stella McCartney and recruiting exceptional managers who have great experience and skill in our industry. I am particularly proud that Tom Ford received last week the outstanding recognition as CFDA designer of the year for his work on the Yves Saint Laurent Fall/Winter collection.”

Among the negative components of the company's report was the forecast that Yves Saint Laurent's operating losses before goodwill and trademark amortization will be approximately US$ 75 million in 2001, compared to the previous estimate of US$ 50 million.

“The process of re-launching Yves Saint Laurent has caused us to expect to sustain a greater loss than we previously forecast,” De Sole continued. “This loss reflects the need to make investments in product design, marketing and communication and development of the directly operated store network, which are necessary to create a truly great brand. It also reflects a disciplined approach to cancel lower end lines and inappropriate licenses.”

The company felt it strengthened its position in the luxury leather goods industry by hiring Tomas Maier as creative director of its Bottega Veneta operation, effective immediately. Prior to joining Bottega Veneta, Maier worked for Hermes, Sonia Rykiel, Revillon and Iceberg, as well as on his own collection, which he will continue. “I have known and admired Tomas Maier for many years,” said Tom Ford, creative director of Gucci Group. “He has extensive design experience in a wide range of luxury products and he has truly impeccable taste.”

Gucci Group owns and operates the Gucci, Yves Saint Laurent, Sergio Rossi, Boucheron, Roger & Gallet, Bottega Veneta, Bedat & Co., Alexander McQueen and Stella McCartney brands. It directly operates stores in major markets throughout the world and wholesales products through franchise stores, duty-free boutiques and leading department and specialty stores.