Gucci Turnaround Seen in Second Half

PARIS — Kering chairman and chief executive officer François-Henri Pinault confirmed Thursday that he expects a turnaround at Gucci in the second half of 2015, despite a disappointing first-quarter performance. “We will see already in the second half very noticeable signs of improvement in Gucci’s business,” Pinault told shareholders at the group’s annual general meeting. Kering earlier this week revealed Gucci’s comparable sales were down 7.9 percent in the first quarter as the company undertakes a turnaround under new ceo Marco Bizzarri and creative director Alessandro Michele. Overall, Kering reported sales rose 11.4 percent in the first quarter to 2.65 billion euros, or $2.99 billion, boosted by “massive” currency tailwinds. On a comparable basis, group sales were down 0.6 percent in the quarter. Stripping out the impact of exchange rate variations, as well as acquisitions and disposals, sales in the luxury division were down 2.6 percent. RELATED CONTENT: WWD Earnings Tracker >> Pinault said the maker of horsebit loafers and Jackie handbags needed to “catch its breath” after a lengthy growth period ran out of steam in 2012. He noted the impact of sales from Michele’s first collections should be felt in group results from November. The executive was also questioned about how Kering — whose

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