The Week Ahead: Will Kering Change Its Tune on Acquisitions? This week, everyone will be talking about Gucci parent Kering’s next move, fashion at Coachella and Allbirds entering China.
Every quarter, Kering reports Gucci’s sales grew a little slower and talk of the need for a major acquisition grows a little louder. To be sure, the brand is still running circles around most rivals, growing 28 percent in the fourth quarter. But Kering is a multi-brand conglomerate competing with the more-diversified LVMH. Saint Laurent, white-hot Balenciaga and McQueen may someday take the pressure off Gucci to perform, but a big acquisition would produce a new centre of value creation in a single stroke. Unfortunately for Kering, there are a imited number of targets it would take a brand
Luxury brands lowered product prices in China as a cut in the country’s VAT rate came into effect on April 1. Continue reading
Gucci, the flagship brand of French luxury and sportswear group Kering, posted a 4.6 percent rise in underlying second-quarter sales on Monday, marking a much sooner-than-expected rebound under its new creative and management duo.
Kering Finance Director Jean-Marc Duplaix said the brand had benefited from strong demand from Chinese tourists in Japan and Western Europe, while Gucci’s sales in China were boosted by discounted sales of its previous designer’s collections.
Kering’s first-half operating profit fell 5.4 percent to 773.2 million euros ($859 million), which Duplaix said was partly due to significant investment in marketing and communications at recovering sports brand Puma. Continue reading
Last Wednesday, the Gucci show launched the Milan Fashion Week. The designer Frida Giannini presented an Eccentric Hippy baba cool collection influenced from the 1970’s and really far from what we were due to expect.
Never forgets that quality is not in the fabric but also in the design. The Gucci’s brand ambassador, Charlotte Casiraghi as well as the face of Gucci’s newly launched cosmetics line and Kate Moss sat front row.
There is no question that the 70s roots of this show ran long and deep. But Giannini seemed to really be trying to bring her beloved decade forward. She did this mostly in her chosen proportions, by cropping her bell bottom boyfriend pants, inserting sexy broderie anglaise into her denim day dresses, and deciding to go with above-the-knee cocktail dresses (instead of a more traditional maxi) for her printed bead embellished silk numbers. In this way she was able to give a feather light fashion face-lift to all the hallmark looks that have a good 40 years on them.