If your name is Gucci, you are always supposed to achieve amazing accomplishments, according to expectations. On the other hand, if your performance reaches two points less than expected, then your group’s stock may well collapse at the market exchange. Last Friday Reuters press agency reported that at the opening of Paris Stock Exchange, Kering´s stock was incredibly dropping by over 6% (Kering is the holding in control over the Tuscan fashion brand): that is the worst crash in the last two years, and the worst performance as to CAC40. Analysts point out that Gucci’s “disappointing” accomplishments caused such slump: in fact, they were expecting the brand to go up by 42%, from April to June, whereas the revenues of the fashion house, led by CEO Marco Bizzarri, actually increased by 40%, two points less then. Investors considered this result to be unrewarding (furthermore, as reported by someone, it might be the early sign of a slowdown). The incident has confirmed a few financial fears, pinpointed by Fashion United: at this point, Kering group’s business success strictly relies on Gucci`s one. Therefore, if Pinault family does not want the slowdown of their flagship brand to affect and jeopardize the entire holding business, they’d better enhance quickly the expansion of the other brands they run.
Ironically, Gucci lets down investors and Kering’s bonds crash at the Stock Exchange. Pinault to think about plan B
