GUCCI WILL GIVE SHARES TO EMPLOYEES IN ITALY
MILAN — Gucci’s sales are set to grow more than 10 percent this year — and the company is spreading the wealth.
Gucci plans to distribute nearly $3 million worth of shares to its Italian employees — including shop assistants, secretaries and factory workers — in a move considered highly unusual for a European company.
A Gucci spokesman said the goal is “to enable employees to participate in the success of the company” and link their work to the company’s performance.
Gucci will distribute a package of 38.25 shares, worth approximately $3,500, to nearly 800 of its non-management employees. The package will be distributed in stages starting this month. A company spokesman said the shares are for Gucci’s Italian employees only.
He added that the shares came from the market and were not part of a new share issue.
Financial analysts are expecting Gucci to post sales of $1.209 billion for 1999, and $1.358 billion for 2000. Consolidated Gucci Group sales, which include Yves Saint Laurent and Sergio Rossi, are expected to reach $1.269 billion in 1999 and $2.026 billion in 2000, according to analysts at Morgan Stanley in London.