April showers

2 July 2003

The fashion group had a terrible quarter as sales slumped and it slipped into an operating loss. Gucci blames Sars, the war and currencies, but still seems to have suffered more than its rivals.

This content is for Subscribers only

Context News

Gucci said that the first quarter of the year had been uniquely challenging for the sector, and particularly March and April, where the war and Sars had a devastating effect worldwide. Sales at the fashion group declined by 14% in the quarter, falling in every region.

Gucci said that retail sales in Europe fell by 21% hit by the sharp fall in tourism. In constant currency terms, sales also fell in the US (12%), nonJapan Asia (5%) and Japan (2.2%). They increased in South Korea and Japan by 14% and 12% respectively.

Sales were also down in all product categories except jewellery. Operating profits fell 89% to E5.8m, if one excludes goodwill and trademark amortisation. Inclusive, Gucci slipped into the red at the operating level to the tune of E24m.

French retailer Pinault Printemps Redoute owns 64% of Gucci and has an obligation to buy out the rest in March 2004 at $101.50 per share.

Context News

Email a friend

Please complete the form below.

Required fields *