News flashes have been coming in today from investment analysts covering PPR, which reported its 1Q08 results earlier today. The news is not good for the Gucci brand, but Bottega Veneta has managed to beat market expectations, even in this downbeat economic environment.
Gucci sales only increased by 2.4% to €513m, versus market expectations in the neighbourhood of 7% growth. As a result, some analysts are considering posting downgrades to their ratings on the PPR stock. Given it's self-stated positioning as an 'Aspirational luxury' brand, it may not seem surprising that Gucci would be one of the first brands to show signs of the economic slowdown.
But that's not the whole story.