Not yet in the bag

摘要

Is the worst over for luxury-goods companies? Domenico De Sole, chief executive of Gucci, the world's third-largest luxury-goods group, certainly thinks so. After a good start for Gucci's autumn-winter collection, shares in the Gucci group recently rose above $85.52, the level at which shareholders can exercise the so-called "Gucci put"-this gives them the option to sell stock to Pinault-Printemps-Redoute, a French retailing group and Gucci's main shareholder. Mr De Sole says he is ecstatic: Gucci's share price has not been so high for a long time. Gucci says retail sales between August 1st and October 12th were up by some 20% in America and by 16% in Hong Kong and China. Sales at Yves Saint Laurent, one of Gucci's fashion houses, rose by about one-third in the same period. Louis Vuitton Moeet Hennessy (LVMH), the biggest luxury group, has announced sales up by 6% in the third quarter. Christian Dior Couture, which is controlled by Bernard Arnault, chairman of LVMH, has also reported increased revenue.