With the purchase of just under 1 million shares of Gucci Group stock between Feb. 24 and last Thursday, Pinault-Printemps-Redoute SA now owns 60.6 million shares of Gucci, or 61.06 percent of the company. PPR held 59.33 percent of the luxury house after purchases made in the four weeks leading up to Feb. 24.
The disclosure of the most recent purchases came in a Schedule 13D filed with the Securities and Exchange Commission on Monday. As reported, PPR has pledged to buy all of the Gucci shares it doesn’t own in 2004 for $101.50 each. It can acquire up to 70 percent of the firm before then.
Through two affiliates, PPR bought 579,953 shares of Gucci on the Amsterdam Stock Exchange for a total of $53.9 million, at an average of $92.93 a share, and 417,254 shares on the New York Stock Exchange for a total of $39.4 million, averaging $94.34 a share. In total, PPR spent $93.3 million for 997,207 shares of Gucci, or an average of $93.52 a share, about $8 less than would have been paid at the 2004 buyout price.
The same shares purchased at $101.50 a share would have cost PPR $101.2 million, so the transactions saved the Paris-based retail and distribution firm $7.9 million. In the case of the shares bought in Amsterdam, dollar figures have been converted from the euro at the current exchange rate. Complicating comparisons in purchase prices, both actual and projected, the euro traded at about $1.06 throughout the day Monday, but is below its recent high of $1.10.
The stock purchases were made through PPR’s Societe Civile de Gestion Financiere Marothi and Scholefield Goodmann BV subsidiaries in France and The Netherlands, respectively.
Gucci shares closed down $1.08, or 1.1 percent, at $94.49 on the New York Stock Exchange Monday as investors digested disappointing news about the war in Iraq after optimism drove the markets up on Friday and much of last week.
PPR became Gucci’s largest shareholder in 1999 when, emerging as a white knight in the luxury firm’s efforts to avoid a hostile takeover by LVMH Moët Hennessy Louis Vuitton, it invested $3 billion in Gucci. Since then, it has filed 11 amendments with the SEC detailing changes in its ownership of Gucci.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews