Gucci in 2004

<< Previous

Excerpts Contd...

The Takeover Attempt Nearly half of Gucci's operating profits came from Asia. So its stock fell steadily in the midst of the 1997 Asian financial crisis, from around $70 in February 1997 in to $30 in October 1997 before bouncing back to around $40 in January 1998, where it remained throughout most of 1998...

Gucci acquired YSL in December 1999 for $ 1 billion. After the takeover, Ford focused on building YSL's brand image, while Sole closed franchised stores, duty-free outlets and shops-within-department to maintain the brand's exclusivity...

Even as speculation mounted over whether De Sole and Ford could enjoy enough autonomy under PPR to justify the renewal of their contracts, De Sole's fears were confirmed. Both he and Ford left the group in April 2004, when it became clear PPR was having the final say in major business decisions...

As December 2004 drew to a close, Polet's much awaited strategy was not yet tabled. Apart from sustaining the magic created by Ford and De Sole for individual brands like Gucci and YSL, Polet had to decide if Gucci's future really lay with multibrand groups or with focused, single-brand companies- the highly successful model that Gucci had followed earlier...

Exhibit 1: Gucci Group Portfolio
Exhibit 2: Men's Break up of Revenues
Exhibit 3: Gucci's Brands
Exhibit 4: Gucci's Financials

Custom Search

---

Economics for Managers Textbook Textbooks Collection	Economics for Managers Workbook ICMR books Collection	Case Studies in Business Strategy Volume VI Case Study Volumes Collection