Gucci Can’t Escape the Fashion Police
The label’s gaudy styles have been a hit for the past few years, but minimalism is bound to return sometime. No wonder investors are skittish.
Gucci's granny chic has ruled the catwalk for years, but fashionistas always crave change in the end.
Photographer: Vittorio Zunino Celotto/Getty Images EuropeGucci’s gaudy creations are moving from cutting-edge to classic. But there are signs that some investors might be starting to look elsewhere for the next big thing.
The fashion house’s French parent company, Kering SA, said on Tuesday that Gucci’s organic sales rose 28.1 percent year-on-year in the last three months of 2018. That’s an impressive performance given that it was being compared to very strong sales growth in the fourth quarter of 2017. Gucci’s operating margin also rose 5.3 percentage points in 2018 to 39.5 percent.