The Gucci Group is set to have a new CEO as Robert Polet leaves the post. Taking over from him will be Francois-Henri Pinault. This is a move by the group’s owner PPR SA to tighten its control of the luxury fashion house. Pinault is CEO of the parent company. Four major brands, that is, Gucci, Bottega Veneta, Yves Saint Laurent and Balenciaga, will now be reporting to Pinault directly. The move coincides with a period wherein the Gucci Group is experiencing a fantastic economic recovery.
PPR SA’s luxury division has reported a net income of 964.5 million euros, up from 950.9 million euros. The division, in fact, exceeded estimates for 2010 as set by analysts.
Following the reorganisation, Gucci Group Chief Operating Officer Alexis Babeau is set to become the group’s deputy CEO. Each of the seven brands within the group will, however, retain autonomy under their respective heads. Meanwhile, analysts suggest that Polet’s ouster is not unexpected. They are saying that buying stock in the company would be a good idea.
Meanwhile, PPR will be focussing its attention on luxury, sports and lifestyle brands. The parent company has plans to sell Redcats and Fnac depending on the financial ability of interested buyers. However, PPR has announced that the group’s growth and profits will continue, with or without the likelihood of acquisitions.
The company has promised even better growth rates thanks to growing sales in Asia and Latin America. The company is particularly impressed with its sales in the Chinese markets. The Gucci Group is planning to increase its capital expenditure considerably in 2011 by opening more outlets, especially in Asia and Brazil.