De Sarno Pursues Gucci Reset with Embellished Coats at Milan Fashion Week

A model presents a creation from the Gucci Fall/Winter 2024 collection during Fashion Week in Milan, Italy, February 23, 2024. (Reuters)
A model presents a creation from the Gucci Fall/Winter 2024 collection during Fashion Week in Milan, Italy, February 23, 2024. (Reuters)
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De Sarno Pursues Gucci Reset with Embellished Coats at Milan Fashion Week

A model presents a creation from the Gucci Fall/Winter 2024 collection during Fashion Week in Milan, Italy, February 23, 2024. (Reuters)
A model presents a creation from the Gucci Fall/Winter 2024 collection during Fashion Week in Milan, Italy, February 23, 2024. (Reuters)

Gucci creative director Sabato De Sarno showed a lineup of ornately decorated wool coats on the catwalk in Milan on Friday, building on his approach for reigniting Kering’s prized label with sensual, pared-back styles.

Models marched down a slightly elevated runway in a sparse, window-lined space parading soft wool coats, long bustier dresses and trim suit jackets cinched with thin belts.

Adding to the chunky loafers, mini-shorts and glossy Jackie handbags that have become label signatures under the new designer's direction were thigh-high riding boots, small purses shaped like half moons, towering platform heels and delicate, see-through dresses with lace.

De Sarno's designs, which have begun trickling into stores, are key to reigniting sales at Gucci, Kering’s largest brand, accounting for half of the French luxury group’s sales and over two thirds of its profit.

The French group recently overhauled top management, sending longtime executive Jean-Francois Palus to Italy to manage the label as it pushes Gucci upmarket.

This consists of emphasizing more classic styles and leather goods in a bid to regain traction after losing ground to rivals like LVMH's Dior and Louis Vuitton.

Stores will not be fully stocked with De Sarno’s styles until later in the year - perhaps by June - but early signs are “very encouraging”, Kering deputy CEO Francesca Bellettini said earlier this month.

The group cautioned that margins will be lower this year as it continues to invest in Gucci.

UBS analysts have flagged early signs of "improving brand heat", noting Gucci is "in a much better place than before,” earlier this month.



Gap's Turnaround Efforts Drive Quarterly Beat in Surprise Early Announcement

FILE PHOTO: The Gap logo is seen on the front of the company's store on Oxford Street in London, Britain, July 1, 2021. REUTERS/John Sibley/File Photo
FILE PHOTO: The Gap logo is seen on the front of the company's store on Oxford Street in London, Britain, July 1, 2021. REUTERS/John Sibley/File Photo
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Gap's Turnaround Efforts Drive Quarterly Beat in Surprise Early Announcement

FILE PHOTO: The Gap logo is seen on the front of the company's store on Oxford Street in London, Britain, July 1, 2021. REUTERS/John Sibley/File Photo
FILE PHOTO: The Gap logo is seen on the front of the company's store on Oxford Street in London, Britain, July 1, 2021. REUTERS/John Sibley/File Photo

Gap on Thursday surpassed Wall Street expectations for the second quarter, as a surprise early announcement of its results showed shoppers turned to its Old Navy and namesake brands to snap up trendy and fashionable clothing.
Shares of Gap closed up nearly 2% at $22.8. The stock was halted during the day following a Bloomberg News report that said the apparel retailer's earnings press release and presentation appeared on its website in the morning, hours earlier than scheduled.
A Gap spokesperson told Reuters that the company's results were briefly and accidentally posted on its website due to an administrative error. It was originally scheduled to release the numbers after the bell.
The Banana Republic owner is in the midst of a brand turnaround under CEO Richard Dickson and has been ramping up its stores with fresher and more chic styles to bring back lost customers.
Dickson on a post-earnings call said Gap's consumer base has broadened and the company is seeing more sell-throughs at full-price, resulting in less discounting.
People, who are otherwise saving dollars and curbing spending on big-ticket items, are more than willing to go all out and spend on in-trend footwear and clothing such as those from Abercrombie & Fitch, Roger Federer-backed On and Deckers Outdoor's Hoka.
"(Gap) is being managed better than it was ... it is not like all four brands are really completely healthy, but they are trending in the right direction under the new management," Morningstar analyst David Swartz said.
Comparable sales at Old Navy rose 5% during the quarter, while the Gap brand posted 3% growth. Banana Republic sales, however, were flat as the brand continues to focus on fixing the fundamentals and improve its pricing and assortment architecture.
Gap's second-quarter net sales rose 5% to $3.72 billion, beating LSEG estimates of $3.63 billion.
It earned 54 cents per share, also topping analysts' average estimate of 40 cents.
The apparel retailer reaffirmed its annual net sales forecast and expects gross margin to expand by about 200 basis points versus its prior forecast of at least a 150-basis-point increase.