Gucci announced yesterday that it will not reach its 2001 business objectives, despite a 5.5% increase of sales during the first quarter of 2001. The Group hopes to benefit from sales worth 2.45 billion US$ (against the 2.6 billion forecast). The luxury group was heavily penalized on the Amsterdam stock exchange, loosing 5,27% of its shares' worth on the 19th of June.
Gucci said it had been hurt by a weaker economical situation in the United States and the cost of pulling up brand Yves Saint Laurent. However, Gucci is not the only luxury group to announce ailing weaker profits. LVMH was also cautious in announcing that the 10% increase of turnover was an objective and not a forecast. De Beers announced a 25% fall in gem sales, due to the slowdown of the US economy.
As to Richmont, it sees the second quarter of 2001 slow down after the record sales of the first quarter (+26%).