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    Gucci Bottom Quarter Rebound In The Fourth Quarter Results In The Fastest Sales Growth

    2016/2/20 13:25:00 47

    French Luxury GroupGucciCurrency Exchange Rate In 2016

    Recently, Gucci's performance has bottomed out in the fourth quarter, but some analysts have pointed out that if Gucci's performance wants to recover faster, it should save more cost than expected in closing the store.

      

    France luxury group

    Open Cloud released fourth quarter earnings report, group sales rose 15.9% to 3 billion 170 million euros in the quarter.

    Compared with the fourth quarter of the year, Hermes group's sales rose 14.5% and LVMH group rose 12%.



    Excluding the effect of exchange rate, group sales increased by 8%.

    Group's brand Gucci organic sales revenue has accounted for 1/3 of the group's total sales, the quarter's revenue grew by 4.8%.

    According to the third quarter earnings report, Gucci brand revenue fell 0.4%.

    In the other second quarters, driven by price reduction, brand revenue increased by 4.6%, and the first quarter was 7.9%.

    Since 2015,

    Gucci

    No matter from visual creativity or branded goods, they have made progress, and they have been re loved by consumers after entering the market.

    Gucci's latest marketing campaign has changed radically, and it is more focused on digital marketing.

    In addition, the No / Longer/Not Yet exhibition, which was held in Shanghai in October last year, has received a lot of word of mouth and brand exposure in social media.

    By category, sales of group luxury goods rose 16% to 2 billion 210 million euros, while sales of sports and lifestyle division rose 15.5% to 916 million euros.

    According to a group spokesman, the group's annual total sales amounted to 11 billion 580 million euros, up 15.4% compared with 2014, operating profit fell 1% to 1 billion 640 million euros, while the main business net profit fell 13.6% to 1 billion 20 million euros.

    Kai Yun group CEO Fran ois-Henri Pinault said, thanks to the development of retail stores, group sales performance in 2015, especially in the second half of the performance.

    At the same time, the company is entering a new stage of growth, the use of brand strength will maximize profits in the long run.

    The group forecast

    Currency exchange rate in 2016

    It will continue to fluctuate and plan to focus on controlling costs and improving brand performance, cash flow generation and capital return.

    Although Gucci's performance has bottomed out in the fourth quarter, some analysts have pointed out that if Gucci's performance wants to recover faster, it should save a higher cost than expected from closing stores.

    In January this year, in order to optimize the resource allocation of shops in Chengdu, Gucci closed the Gucci Chengdu Renhe Spring Department store.

    In order to break down the embarrassment of performance decline, luxury companies have begun to close down stores and reduce costs under the line to start their own rescue.

    Most luxury brands will shut down some stores in China's two or three tier cities this year. Many luxury brands say they will suspend new stores in China this year.

    Kai Yun group also said that Gucci will not plan to open stores on a large scale, and will make good use of existing store resources.

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