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Marco Bizzarri, Gucci’s chief executive since 2015, said in a message to store employees they should not be daunted by any sign of a slowdown or variations in daily performances, which he said would be normal after rapid growth and at a time when year-ago comparisons are growing tougher. “I am here today to reassure you in the sense that Gucci is stronger than ever,” Bizzarri said in the video message, adding Gucci was maintaining its competitive advantage over “any other brand in the arena.”.
Kering executives had already flagged to market watchers a “progressive normalization” of sales growth in 2018, The nearly four-minute-long video was presented to staff in the past week following Gucci’s catwalk show in Paris, which was highlighted by Bizzarri in his comments, A copy of the video was shared with Reuters by a person who had received it in the fashion industry, Kering declined to comment, Gucci, like its rivals, has been carried by strong demand from Chinese consumers, Comparable sales yellow & blue plaid cufflinks at the label increased 40.1 percent in the second quarter from a year earlier..
That was a touch below forecasts following better-than-expected 48.7 percent growth in the previous three months, but still a faster pace than rivals like LVMH’s (LVMH.PA) Louis Vuitton, a brand Gucci wants to overtake one day as it aims to increase annual sales to 10 billion euros, from 6.2 billion euros ($7.15 billion) in 2017. “We need to recognize the fact that at a certain point we’re going to slow down, we cannot keep on growing 50, 60 percent per month, it’s impossible,” Bizzarri said in the video, adding that growth was still “exceptional” and telling staff to “enjoy the ride”.
“I’m happier now than I was two years ago, I’m very very confident,” Bizzarri said, Kering’s shares have risen more than 20 percent this year, driven in large part by Gucci’s strong performance, Its Saint Laurent and Balenciaga brands are riding high too, though Gucci accounts for over 70 yellow & blue plaid cufflinks percent of group profits, Gucci is investing in e-commerce and store facelifts to keep growing the brand, as well as building up areas like cosmetics and perfumes to maximize revenue from non-core products..
(Reuters) - Snap Inc’s (SNAP.N) Chief Executive Evan Spiegel has set a goal to achieve full-year profitability in 2019 and outlined a new set of strategic goals, online news service Cheddar reported on Thursday, citing a memo. In the memo dated Sept. 26, Spiegel admitted that Snapchat had “rushed redesign, solving one problem but creating many others,” Cheddar reported. Spiegel said the company would aim to reach the profit goal by attracting older users through revamped marketing, increase active advertisers and better serve emerging markets users with its forthcoming redesign of its Android app, according to a copy of the memo posted by Cheddar.
Snap did not immediately reply to a request seeking comment, There was no mention of any cost-cutting measures that could help the company achieve its profitability goal, The company has shifted over the last year to primarily selling ads through self-service, automated auctions rather than direct sales, That has come at the cost of the premium feel Snap had tried to ascribe to its ads, but gave overall sales a jolt by attracting more advertisers, In September, Neil Campling, co-head of global thematic group, Mirabaud Securities had said the initial plan to reach profitability yellow & blue plaid cufflinks by the end of this year looked like a long way off..
Daily Snapchat users fell to 188 million in the second quarter in August from 191 million last year for the first time. Snap had never before logged a quarterly drop in daily users, according to data it released going back to 2014. In August, Snap executives had told analysts that the redesign was the primary reason for usage slipping and that a European Union data protection law that spurred changes to user privacy terms had no material effect. Snap shares are down more than 40 percent since it reported its second-quarter results and closed on Thursday at $7.80. Shares rose 3.2 percent after hours following the Cheddar report.
(Reuters) - Costco Wholesale Corp’s (COST.O) quarterly sales barely beat analysts’ estimates on Thursday as growth in online business decelerated to its slowest in the year amid intense competition, while gross margins fell on rising costs and higher investments, The warehouse club retailer’s shares fell as much as 3 percent after the bell, with the company saying it is reviewing its internal control over financial reporting, The company’s gross margin fell 35 basis points to 10.92 percent in the yellow & blue plaid cufflinks fourth quarter on higher gas prices and investments..