Kering plans to overhaul Gucci brand

France
Published:  22 April, 2015

Kering, owner of a number of high-end and exotic leather tanneries said that sales at Gucci—which makes up around a third of Kering’s revenue fell 7.9% to €869 million on a like-for-like basis, which excludes acquisitions and disposals and currency effects, as the brand’s overhaul took its toll.

French luxury and lifestyle company Kering SA said April 21 that overhauling its flagship brand Gucci will be its top priority this year, as business at the label slid in the first quarter.

Kering, home to high-end labels such as Bottega Veneta and Yves Saint Laurent as well as sports brand Puma, posted a 11% rise in total quarterly sales to €2.65 billion ($2.83 billion) from €2.38 billion a year earlier, as the weak euro bolstered sales.

But stripped of the positive currency impact and excluding acquisitions and disposals, sales slipped 0.6% over the period, as the luxury division faltered with revenue plunging at star brand Gucci.

The figures “reflect a complex economic and monetary environment as well as the transition under way at Gucci,” said Kering Chairman and Chief Executive François-Henri Pinault.