FRANCE. Gucci Group expects its Yves Saint Laurent (YSL) brand to reach profitability in fiscal year 2005, a year behind target.
Gucci ceo Domenico de Sole told analysts that the company expects YSL to report a fiscal 2002 operating loss of less than the €76 million (US$81 million) it made in the 12 months ended January, 2001. Citing current economic conditions, Gucci said it expects YSL to make “a small operating profit” in fiscal 2005. Management at the world’s third-biggest luxury goods company has been focusing considerable energy on turning around YSL as it seeks to build on its namesake division’s success and create a multi-brand empire.
In global travel retail perfumery YSL ranks among the top 12 brands with retail sales worth well over US$100 million in 2001, according to Generation DataBank. Gucci fragrance and cosmetics division does not belong to Gucci Group but instead to Wella Group (Cosmopolitan Cosmetics).
