The Decline Of Gucci Results In The Impact Of Kai Yun Group.

Although Gucci Gucci brand management has changed dramatically over the past year, it is still powerless to return to the sky. The Italy brand continues to suffer from the extreme weakness of Gucci Gucci. The first quarter revenue of the group's luxury sector is the worst quarterly performance in recent years.

France's second largest luxury group Kering (Kai Yun) released its first quarter 2015 earnings report:

total

2 billion 650 million euros, an increase of 11.4% over the previous year, slightly higher than the 2 billion 640 million euros expected by analysts, benefiting from the devaluation of the euro and the strong performance of its sports brand Puma far beyond expectations.

But press unchanged.

And comparable architecture, total sales decreased by 0.6% compared to the same period last year, and did not reach the target of 1.8% growth expected by analysts.

As the core of Kering group's profits, sales in the first quarter were lower than expected.

As of March 31st, sales fell by 7.9% in three months, exceeding analysts' expectations of 3% to 6%.

Wholesale income decreased by 23% compared to the same period last year, accounting for 83% of total revenue (502 retail outlets covering 502 of the world), a decrease of 4% over the same period last year.

The Asia Pacific region decreased by 10% compared with the same period last year, while Japan was down by 9%, the North American market was flat, and the Western European market grew by 6% over the same period last year.

As for competitor Chanel to start the global price adjustment in line with the regional price differential, Jean-MarcDuplaix said: taking into account the increasing price pparency, we do not think that wait-and-see attitude is desirable, nor do we think that the price adjustment in the global market is the best solution.

He said: three factors, such as exchange rate fluctuations, inbound tourist flows and internal pparency, constitute a new environment for global luxury brands. As a group, they should be pformed into opportunities.

The price adjustment applies to certain brands in some areas, but if necessary, price adjustment can be combined with other internal actions, such as strategic review of product structure, to stabilize the spread.

In view of the impact of exchange rate fluctuations on luxury brands in Asia, Jean-MarcDuplaix, chief financial officer of Kai Yun group, talked about his view that despite the group's close attention to inbound tourist flows fluctuated by exchange rate changes, it is still difficult to quantify the net impact of exchange rate fluctuations.

Affected by currency hedging, the group's first quarter profits were undoubtedly affected.

The rise of the parallel market of luxury goods caused by the depreciation of the euro will have an impact on the distribution and protection of distribution franchise. This phenomenon should be concerned.