What is Gucci’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Gucci because it is an OTC company. However, Capri Holdings (NYSE: CPRI), Louis Vuitton (OTC: LVMUY), and Hermes (OTC: HESAY) are luxury fashion stocks that traders can invest in.
When we think of luxury fashion brands, some names, such as Louis Vuitton, Burberry, Dior, Chanel, Hermès, Prada, and Gucci, quickly come to mind. This article will focus on Gucci and explore competitors’ trading in the US stock market.
Although you can’t directly purchase shares of Gucci, it is possible to invest in its parent company, Kering SA, which trades on the European and OTC markets in the US. The company’s history and change of ownership have significantly shaped its brand identity and market strategy and helped it remain a luxury brand.
Here is everything you need to know about Gucci, Kering SA, and the other players in the luxury fashion world.
Table of Contents
Gucci Introduction (No Stock Symbol)
Gucci was founded in 1921 by Guccio Gucci in Florence, Italy. The company initially focused on producing high-quality leather goods and equestrian products.
Over the decades, Gucci expanded its product line to include handbags, clothing, and accessories. The company quickly became a symbol of Italian craftsmanship and luxury.
By the 1950s, Gucci had opened stores in Milan and New York, marking its entry into international markets. Thanks to its iconic products, the brand’s popularity quickly soared and attracted high-profile clients.
During the 1980s, Gucci was very successful, but the company faced challenges due to internal family conflicts and management issues. The Gucci family struggled with disagreements over the company’s direction, which led to a decline in brand prestige and financial performance.
1987, Investcorp acquired a 50% stake in Gucci and purchased the remaining shares in 1993. 1995, the company underwent an IPO and began trading in various stock markets.
During the 1990s, Gucci remained successful thanks to its creative directors. Thanks to Tom Ford, the brand has transformed and created innovative designs that revitalize its image. Despite the challenges, Gucci remained one of the most prestigious brands in the world.
At the end of the 20th century, everything changed for Gucci. In 1999, the French conglomerate Pinault-Printemps-Redoute (PPR) acquired a controlling stake in Gucci after a competitive battle with LVMH. By 2004,
PPR (renamed Kering in 2013) acquired all remaining shares and delisted Gucci from the NYSE and Amsterdam stock exchange. This acquisition began a new era for Gucci, as Kering provided the financial backing and strategic support needed to expand further.
Thanks to Kering, Gucci further transformed. The company began leveraging social media and e-commerce to reach a younger audience. New designs and products began to go onto Gucci shelves thanks to a stronger supply chain, modernized stores, and effective advertising.
Today, Gucci operates approximately 538 stores across over 50 countries. Most (181) are in the Asia-Pacific region, followed by Europe, the Middle East, and the Americas.
Kering SA (EPA: KER and OTCMKTS: PPRUY)
Gucci started in Italy, but today, a French company owns them. Kering is known for its portfolio of high-end fashion brands. The company operates two main segments: Luxury (dominant) and Sport and Lifestyle (impact reduced in recent years).
The company’s portfolio includes Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen and Brioni. Kering also owns jewelry and eyewear brands such as Boucheron, Pomellato, and Kering Eyewear.
In 2023, Kering’s revenue surpassed $20B, but that number slightly decreased from 2022. The company’s stock has fallen in the last 12 months, losing nearly 50% of its value. Despite beating sales expectations in its recent quarterly reports, the company has missed its EPS estimates.
Kering’s flagship brand, Gucci, has faced challenges maintaining its growth momentum. In the last 24-36 months, consumers have been spending less on luxury goods and overall discretionary items due to inflation and changing spending patterns.
Gucci’s revenue and growth have shown significant fluctuations over the years. In 2023, the company reported a 6% decline in revenue. Consumers weren’t as interested in luxury goods as during the pandemic.
Despite all this, Gucci and Kering are positive they can continue to grow in the upcoming years. However, they face some serious challenges with consumer demands and fierce competition.
1. LVMH (EPA: MC and OTC: LVMUY)
We begin this Gucci stock alternative with Louis Vuitton (LVMH), which trades on the Paris Stock Exchange and over-the-counter (OTC) in the US. LVMH holds one of the most impressive portfolios of luxury brands in the world, such as Louis Vuitton, Dior, Fendi, and Givenchy.
The company’s CEO, Bernard Arnault, is also known worldwide and was the richest man in the world once upon a time. This combination makes LVMH one of the most well-known brands globally.
Both LVMH and Gucci are trendsetters thanks to their products and creative ideas. While LVMH emphasizes exclusivity and emotional connection with consumers thanks to celebrity endorsements and collaborations, Gucci leverages its unique brand identity and digital marketing to engage with consumers, particularly through social media and online platforms.
However, both brands have one thing in common. Their stock price took a hit last year despite most sectors performing fabulously. Luxury brands aren’t as trendy, but that will likely change with time.
2. Hermes (EPA: RMS and OTC: HESAY)
We continue our Gucci stock alternatives with Hermès, trading on the Paris Stock Exchange and OTC markers in the US. Hermes and Gucci offer similar products (leather goods, various accessories, and ready-to-wear) and target affluent consumers with a higher net worth.
However, Hermès is a much older brand (founded in 1837) known for its elegance, craftsmanship, and exclusivity. Many consumers impatiently wait for Hermès’ new limited designs and sign up on the company’s waiting list.
While brands like Gucci (down 48%) and LVMH (down 14%) have underperformed the market in the last 12 months, Hermès has excelled (up 19% in the last 12 months and 260% in the last five years).
What is Hermès doing differently from its competitors? The company has grown rather than stagnated thanks to its exclusivity and geographic diversification. Its earnings are stronger QoQ and YoY and more appealing to investors.
3. Burberry (LON: BRBY and OTC: BURBY)
Next on the list is Burberry, which trades on the London Stock Exchange and the OTC in the US. Burberry may be a luxury brand, but its focus is to balance high-end luxury and accessible products, allowing it to appeal to a broader audience.
The company can adapt to trends by releasing good quality products that remain affordable to the general population.
However, Burberry’s stock has been struggling. The company’s sales were down 21% last year, and its EPS has also been nosediving.
In the last 12 months, the stock has seen very few green days and is down by over 67%. Despite this, the company remains profitable. Some analysts believe that Burberry’s stock might only recover in 2027 but won’t reach its 2022 highs again for many years.
4. Prada (HKG: 1913 and OTC: PRDSY)
Prada is an Italian luxury fashion brand that trades on the Hong Kong Stock Exchange and OTC in the US. The brand’s designs are more classical and formal and appeal to luxury market segments.
Prada’s target demographic is slightly older and more mature. As for the stock, analysts are predicting that the company will keep growing and will reveal stronger earnings this year. The stock has been heading in the right direction in the last five years.
5. Capri Holdings (NYSE: CPRI)
We conclude this section by discussing Gucci stock alternatives with Capri Holdings. The company was founded by designer Michael Kors but rebranded in 2019 to become Capri Holdings.
It is known for its luxury lifestyle brands, such as Versace, Jimmy Choo, and Michael Kors. The company’s products are similar to those of Gucci, and its stores are in the same area.
However, Capri might not be publicly traded much longer. In August 2023, Tapestry Inc (NYSE: TPR), the parent company of Coach and Kate Spade, announced plans to acquire Capri Holdings for approximately $8.B.
This acquisition is currently under regulatory review, with potential implications for competition in the luxury handbag market. The FTC doesn’t like monopolies and is challenging the acquisition, but Tapestry filed a motion against the FTC. Stay tuned for more news!
Final Thoughts: Gucci Stock
To conclude, Gucci is a luxury fashion brand that trades under its parent company, Kering SA. Gucci stock isn’t as hot despite being very popular and fashionable. This is an issue for most luxury brands, except Hermès.
Many consumers are uncertain about the outlook of our economy and prefer spending their wealth on more practical items.
The companies listed above performed very well during the pandemic years, but their growth and popularity began stagnating and even declining since 2022. This might not be the optimal sector at the moment unless you’re trying to time the market and catch a falling knife.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
Gucci trades under its parent company, Kering SA, on the US's Paris Stock Exchange and OTC.
Gucci has many competitors in the luxury fashion industry. Those that trade on the stock market are LVMH, Hermès, Burberry, Prada, and Capri.
Gucci clothing and accessories may be good investments, but the company's stock has struggled since the pandemic's end. There is less demand for luxury items, impacting the sales of many luxury fashion companies.
