Gucci Loss Of Large Number Of Customers

In fact, as early as the 2014 fiscal year, Gucci has seen a 6.7% decline in operating profits and launched major personnel changes at the end of the year, and re appointed the president of Greater China.

However, for many luxury brand plans to try to reduce the price strategy, Kai Yun group did not mention it.

New in succession

When joining the price cut in China, Gucci, which has not yet announced the price adjustment strategy, plunged 7.9% in the first quarter, while the wholesale business of the whole Kai Yun group shrank by 23%, which meant the loss of large customers.

By the end of March 2015,

Revenue fell by 7.9% at fixed exchange rates.

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With stable growth and 6% increase in Western Europe, Japan and Asia Pacific markets are not ideal.

Dragged down by Gucci, its parent company's revenue in the first quarter also showed a negative growth of 2.6%, which is the worst quarterly performance in recent years.

Jean-Marc Duplaix, chief financial officer of Kai Yun group, revealed that in the first quarter, the wholesale revenue of Gucci brand dropped by 23%, which meant that the brand was losing a lot of customers.

For the reasons for the weakness, Franois-Henri Pinault, the chief executive of the group, said it was mainly affected by the complex economy and the Gucci brand in the pition period.

The cost control plan was specifically mentioned in the earnings report.

Analysis shows that the use of such expressions by luxury brands is extremely rare.

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Ryan Drexler and its investment company Consac LLC said that Quiksilver Inc. management should look for buyers before the situation worsens, in order to protect the rapidly declining shareholder value.

Due to the sluggish performance, Quiksilver Inc. (NYSE: ZQK) has fallen 73% in the past 12 months, leaving only 300 million dollars in market value, which was 1/5 two years ago.

At the end of last month, Quiksilver Inc. (NYSE: ZQK) announced that the replacement of chief executive and chief financial officer would result in a sharp fall of 16.4% in the day, the largest single day decline since September.

Andy Mooney, the chief executive who has just been in office for more than two years, has left Quiksilver Inc. and replaced Pierre Agnes, who has served the company for 27 years and was promoted to the president of the company in November last year.

Meanwhile, Quiksilver Inc. co founder Bob McKnight, who was replaced by Andy Mooney in January 2013, will return to the company as chairman.

Bob McKnight founded Quiksilver Inc. in 1976. It served as CEO of the company from 1979 to July 1991. It was president and CEO in August 1991 and was re appointed as president in February 2008.

Under the leadership of Bob McKnight, Quiksilver Inc. has become an outdoor sports Brand Company with annual sales of $2 billion. The company now has three major brands: Quiksilver, Roxy and DC.

In addition, the company's chief financial officer, Richard Shields, will leave the Thomas Chambollem, who is currently the chief financial officer of Europe.

Quiksilver Inc. did not provide a significant restructuring of the management, but in the announcement, the main task of Andy Mooney is to improve the company's business and efficiency and find growth opportunities, among which the North American wholesale channel is the focus.

However, due to the strong US dollar, Quiksilver Inc. has lowered its annual performance expectations. The annual revenue is expected to fall from the previous 14.8-15.5 billion to 13.8-14.5 billion, and the gross margin has been lowered from 48.5%-50.0% to 48.5%-50.0%.

Consac LLC says it owns more than 3 million 500 thousand shares of Quiksilver Inc.. The company says Quiksilver Inc. is still valuable for strategic buyers of similar sports and lifestyle brands such as Nike Inc., Nike (Group), or VF Corp. (Group).

In the first quarter of fiscal year ending January 31, 2015, Quiksilver Inc. continued operating net loss of $18 million 290 thousand, narrowing from $21 million 890 thousand in the same period last year, and diluted earnings per share fell from $0.13 to $0.11, better than analysts' average expected $0.13.

Revenue recorded $340 million 900 thousand, down 13.7% from a year earlier of $394 million 900 thousand, also better than analysts' expectations of $339 million, and fixed exchange rate decreased by 4%. In the first quarter, Quiksilver Inc. had a 3% decline in same store sales; gross margins fell 110 basis points to 49.7%.