This week everyone will be talking about Gucci’s latest sales figures
- Kering, Moncler and Hermès report quarterly results on Oct. 24
- Gucci’s pace of growth has slowed markedly this year, and sales dropped in the US in the second quarter following the “blackface” balaclava controversy
- In the first half of the year, Gucci represented about 60 percent of Kering’s revenue
Kering’s star brand officially came back to earth last quarter after two years of eye-popping growth. The question is where Gucci heads next, now that it’s behaving like a normal, if still highly successful brand. A few factors point to a bright future: Alessandro Michele’s latest show demonstrated an aesthetic pivot that garnered favourable reviews; the brand’s crack team of merchandisers will know what to do next. Gucci has also resumed blitzing American consumers with advertising after a brief lull following the blackface controversy. A foray into cosmetics appears to have paid off, with over 1 million tubes of lipstick sold in the line’s first month. And the brand has certain items — the belt, for starters — that keep it front and centre with consumers. The biggest hurdle may be the high expectations set by Chief Executive Marco Bizzarri and Michele during their remarkable first few years with the brand; ordinary success can almost seem like a failure after that.
The Bottom Line: Watch how Kering’s other major brands perform, particularly Bottega Veneta. With Gucci behaving more like a normal brand, Kering needs to show it’s not a one-trick pony more than ever.
