Italian luxury goods maker Gucci Group warned todaythat both sales and operating profit would fall short of previous forecasts because of mounting losses at its Yves Saint Laurent (YSL) division.
The news pulled Gucci shares, listed in Europe on the Amsterdam Stock Exchange, down more than 10 per cent to euro 90.80.
Gucci said YSL losses are expected to rise to $75 million from the previously forecast $50 million. The company has been seeking to revive the glamour of the French designer YSL by buying back third-party licences and only selling products in exclusive boutiques.
Gucci said its full-year 2001 revenues would now come in at $2.45 billion compared to its previous forecast of $2.6 billion. Full-year operating profit will be about $410 million, down from the previously expected $440 million.
Turnover in the Gucci division - maker of handcrafted handbags - climbed 11.5 per cent to $257.6 million, with Japan retail sales up 26 per cent, Europe gaining 27 per cent and North America rising one per cent.
The Gucci division is by far the largest unit, accounting for about 65 per cent of sales.