Family & Finance Don’t Mix
The Gucci Group, like many empire brands, is under an umbrella company which manages other luxury brands as well. I learned a few interesting financial quotes of the Gucci Group from it’s overhead company, PPR. PPR’s CEO and chairman is Francois-Henri Pinault (Sound familiar? He’s husband to actress Salma Hayek & recently outted father of supermodel Linda Evangelista’s four-year-old son.) PPR also manages other luxury houses, such as Yves Saint Laurent, Alexander McQueen, Stella McCartney, Balenciaga and others. From their website I gained some statistics of their finances from the first half of 2011.
- PPR’s Reoccuring Operating Income went up 5% in the past year, the Gucci Group contributed 765 million (Euro) to the ROI for that year
- Gucci brought in a revenue of 2,666 million (Euro) last year alone
- The majority of Gucci’s revenue is due to leather goods (57%) and the other leading aspects include ready-to-wear (13%) and shoes, also at 13%
The brand has not always been doing favorable in the market place. In the 1980s family disputes nearly landed Gucci bankrupt by the early 1990s. This article highlights the turn around in Gucci finance over the past decades.
As a result, shares in the firm were sold to InvestCorp International, which eventually won full control in 1993 and took Gucci public. A new management team and a revamped image, coupled with excess capital, soon enabled Gucci to reach unprecedented financial success, and the company then began a series of strategic acquisitions, which includes the French fashion house Yves Saint Laurent, Boucheron, Sergio Rossi, and Balenciaga. Gucci now has over 200 franchised and company-owed stores worldwide.Read more: http://www.answers.com/topic/gucci-group-nv#ixzz1ZNo5VZqS