Skip Nav
Spring Fashion
37 Weekend Outfits to Have on Hand — Till the End of Time
Mary-Kate and Ashley Olsen Shed All Their Layers For 1 Special Piece
Cara Delevingne
If This Is Cara Delevingne's Engagement Ring, She's 1 Very Lucky Girl

PPR Update: Tomas Maier Recycling Unused Material for Bottega Shoes, YSL Reporting $24M Loss, and Pinault "Impressed" With Son

PPR Update: Tomas Maier Recycling Unused Material for Bottega Shoes, YSL Reporting $24M Loss, and Pinault "Impressed" With Son

>> Even designers are shopping the closet when it comes to piecing together their latest collection. Fortune's Peter Gumbel writes in his new profile on Francois-Henri Pinault of PPR: "All the brands have been scouring for ways to save cash. Hiring and salaries have been frozen since last September. Bonuses for this year have been halved too. Inventiveness has become the order of the day."

Robert Polet, CEO of PPR's Gucci Group, illustrates with a story of how he found Tomas Maier on the floor of Bottega Veneta's headquarters in New York City with his shoe manager last November, going through a pile of books filled with leather and skin samples.  Fortune relates: "They were checking how much of each material they had in stock, planning to use it up in the next collections. 'I left the room and thought, Wow,' Polet says. 'Finding ways to manage down inventory has almost become a sport.'"

So how does Pinault feel about YSL's losses? »

Despite all the cost controls Pinault has implemented, some of the group's brands are still suffering — YSL reported a $24 million operating loss in the first half. The Gucci brands as a whole accounted for just 17 percent of PPR's revenue in 2008 but more than 40 percent of its operating income.  But Pinault, Fortune reports, remains cautious about focusing on the short-term outlook.

Regardless of what happens, Francois Pinault senior is confident in his son's ability: "He has a lot of sang-froid. I'm impressed — but don't tell him that. We're not a family that gives compliments easily."  He used to stop by Polet's office to check in on Francois-Henri, but no longer feels the need; he jokes that if he drops by a Gucci store now, "It's only to check for dust. I follow [Francois-Henri's] activity, but I'm not looking over his shoulder every morning to see what he's doing."

Around The Web
Join The Conversation
Princess Sofia Wearing a Gold Sequin Dress
Kate Upton Wearing All-Black Outfit
Kate Upton Wearing Leather Jacket at the Knicks Game
Bottega Veneta Spring 2013 | Runway
Bottega Veneta Spring 2013 | Pictures
Salma Hayek Wearing Bottega Veneta Boho Dress
Bottega Veneta Resort 2013 Runway

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

From Our Partners
Latest Fashion