“Enjoy the ride” – Gucci boss reassures staff over slower growth

Nothing to worry about.

Gucci’s boss has reassured store staff over a slowdown in the pace of sales growth after an earlier revenue explosion at the Kering-owned super brand, according to an internal video message seen by Reuters.

Gucci is the biggest earner at the French luxury goods group, and has outperformed most of its peers since 2016 under designer Alessandro Michele and CEO Marco Bizzarri’s leadership.

Bizzarri said in a message to store employees they should not be daunted by any sign of a slowdown or variations in daily performances, which he said would be normal after rapid growth and at a time when year-ago comparisons are growing tougher.

“I am here today to reassure you in the sense that Gucci is stronger than ever,” Bizzarri said in the message, adding Gucci was maintaining its competitive advantage over “any other brand in the arena.”

Kering executives had already flagged to market watchers a “progressive normalisation” of sales growth in 2018.

The near-four-minute-long video was presented to staff following Gucci’s catwalk show in Paris, which was highlighted by Bizzarri in his comments.

“We need to recognise the fact that at a certain point we’re going to slow down, we cannot keep on growing 50, 60% per month, it’s impossible,” Bizzarri said, adding that growth was still “exceptional” and telling staff to “enjoy the ride”.

“I’m happier now than I was two years ago, I’m very very confident,” Bizzarri added.

Last year, WGSN Insight took a deep dive into Gucci’s marketing strategy. Read the full story here.

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