This chapter delves into Gucci's challenges in maintaining luxury status amidst mass market accessibility through heavy discounting, exploring its blend of luxury and fashion trends that have made it vulnerable to changing consumer preferences. It discusses the brand's revenue implications and image erosion, tracing the transformation under a Texas designer's leadership, power struggles within luxury circles, and the shift in creative direction that reshaped Gucci into a Hollywood-embraced fashion-forward brand.
Gucci was once a symbol of red-carpet luxury, but its brand, along with its sales numbers, is faltering. This Tuesday, Gucci’s parent company Kering reported its latest earnings: Gucci’s comparable revenue dropped by 18% in the first quarter this year. Kering also warned that recurring operating income will continue to plummet in the first six months of this year.
On today’s Big Take podcast, Bloomberg’s Angelina Rascouet and Sara Forden talk about what went wrong at the house of Gucci, and how its billionaire owner family, the Pinaults, plan to rescue it.
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