Despite analysts predicting profits at Gucci would go downhill, the luxury brand has performed better than expected. In fact, fourth-quarter sales at Gucci rose 3.4 percent. A New York Times article attributed this success to The stronger dollar and yen and continuing demand for luxury goods, especially in Asia.”
And Gucci is not the only PPR brand doing well. Seven of PPR’s eight luxury labels, including Balenciaga and Stella McCartney, also reported an operating profit last year.
PPR’s chairman and CEO, Francois Pinault, seemed pleased with the news. He said, “The crisis may affect the speed of our plans but not the overall strength of our group, which is solid.” So PPR may be slowing down, but as we all know, speed is not everything – slow and steady usually wins in the end.