Brunello Cucinelli, the Italian designer who built a decades-old clothing empire on a foundation of cashmere, is suddenly having a rough go of it in the stock market. His company's shares are down 24 percent this year on the Borsa Italiana, while Bloomberg Indexes' Global Luxury Goods index is down 6.2 percent. Now the company is appealing to investors with a 40 million euro ($56 million) infusion of six new stores in five countries and a new men’s suit collection. Dandy, you say.
Kering SA’s Gucci luxury-goods brand posted the weakest quarterly sales growth in four years amid softening demand in Europe and China, increasing concern over a slowdown at the company’s biggest unit.
PPR SA, the French owner of Gucci, predicted another year of growth in 2013 amid an increasing focus on luxury goods and reported profit that beat estimates, lifting the shares to the highest price in more than 11 years.
PPR SA may rise in Paris trading after saying it’s confident of revenue and profit growth in 2012 and reporting a 16 percent gain in third-quarter sales, led by demand for luxury goods such as Gucci bags and Bottega Veneta wallets.