Florence-based Gucci Group, a division of PPR, reported an 8.8% revenue increase on a constant currency basis for the quarter ended 30 September 2008 compared to the previous year. 

Sales rose in all regions of the globe, led by Asia-Pacific (excluding Japan) with a 27% increase.  China led the region with 55% growth for the quarter.  The Asia-Pacific region now represents 23% of Group sales.

North American revenue climbed 9% and now totals 18% of sales.  Revenue was up 5% in Japan (representing 15% of sales) and 2% in Europe (44% of sales).  

At September 30, 2008, the Gucci Group network comprised 548 directly operated stores, of which 27 opened in the 3rd quarter.  Gucci Group brands include Bottega Veneta, Boucheron, Balenciaga, Yves Saint Laurent, Alexander McQueen and Stella McCartney.

LBN Comment:  In this environment, managing any growth is an accomplishment.  But Gucci Group's 8.8% revenue growth must be evaluated against 11.4% store growth.  Even in China, seemingly-astonishing sales growth of 55% lagged store growth of 68.8%.  In a sustained downturn, such aggressive expansion could be problematic.

(Posted 24 Oct 2008)