Financial Situation of Gucci
Financial situation of Gucci
Gucci is the main company of the Gucci group. This is clear if we analyze the participation of Gucci in the overall financial results: 67% more or less. Taking in consideration the operative results the participation is even higher because we are around 90% with a value of 618 million of euro over 692 millions in total. These results are obviously affected by the recent crisis started in October 2009 that has affected the economy as a whole. One of the main aspects is that the decline in this two years has been very low, because we passed from 625 millions to 618 millions, and this results comes essentially from a strategy based on efficiency and on the positive results coming from the high level growth markets (China….) that has partially compensated the reduction in the sales level of the western country.
2010 can be considered as the first year of recover after this global crisis. Sales are, in fact, growth of 25% in the Asia – Pacific area and 8% in Europe. This recover has not started yet in USA that report a few negative results, and Japan that signs a more important -8%, but this is not a completely unexpected result because far east is where the luxury market as the biggest issue.
Considering the value of the return on equity, Bloomberg provide us a 4,87%. This value refers to the Gucci group as a whole and not only on Gucci, but as we know Gucci is the main company of the Gucci group, and it means that the result should not be so different.
To provide a more complete view of the financial situation, this is the analysis of the revenues divided by geographic areas and type of business:
Consideration about the JV
Our analysis is based on estimations due to the difficulty of getting reliable data of the Indian luxury market. This is essentially caused by the low propensity of local brand to provide financial informations.
The total level of the investment sustained by Gucci is 170000 €, getting with this the 51% of
Gucci is the main company of the Gucci group. This is clear if we analyze the participation of Gucci in the overall financial results: 67% more or less. Taking in consideration the operative results the participation is even higher because we are around 90% with a value of 618 million of euro over 692 millions in total. These results are obviously affected by the recent crisis started in October 2009 that has affected the economy as a whole. One of the main aspects is that the decline in this two years has been very low, because we passed from 625 millions to 618 millions, and this results comes essentially from a strategy based on efficiency and on the positive results coming from the high level growth markets (China….) that has partially compensated the reduction in the sales level of the western country.
2010 can be considered as the first year of recover after this global crisis. Sales are, in fact, growth of 25% in the Asia – Pacific area and 8% in Europe. This recover has not started yet in USA that report a few negative results, and Japan that signs a more important -8%, but this is not a completely unexpected result because far east is where the luxury market as the biggest issue.
Considering the value of the return on equity, Bloomberg provide us a 4,87%. This value refers to the Gucci group as a whole and not only on Gucci, but as we know Gucci is the main company of the Gucci group, and it means that the result should not be so different.
To provide a more complete view of the financial situation, this is the analysis of the revenues divided by geographic areas and type of business:
Consideration about the JV
Our analysis is based on estimations due to the difficulty of getting reliable data of the Indian luxury market. This is essentially caused by the low propensity of local brand to provide financial informations.
The total level of the investment sustained by Gucci is 170000 €, getting with this the 51% of