Starting off with its spring-summer collection, animal fur in its clothing would be stopped beinig used by the luxury fashion brand Gucci from next year.
During the 2017 Kering Talk at the London College of Fashion, this the fur-free policy on Wednesday was announced by Marco Bizzarri, the Italian firm’s president and CEO of the company.
“Being socially responsible is one of Gucci’s core values, and we will continue to strive to do better for the environment and animals,” he said.
Alessandro Michele, the company’s current creative director, was to be partly credited with the decision to end the use of fur in Gucci clothing, Bizzarri said/ while making the announcement.
“In selecting a new creative director, I wanted to find someone who shared a belief in the importance of the same values. I sensed that immediately on meeting Alessandro for the first time,” Bizzarri said.
For their work in helping the fashion house stop using animal fur, the Humane Society International and the Fur-Free Alliance were also thanked by Bizzarri.
The Gucci move was a “huge game-changer” for the world of fashion, the Humane Society said in a statement. Among the fashion companies that have already refuse to use fur in their clohing include names such as Armani, Hugo Boss, Yoox Net-a-Porter and Stella McCartney, noted the society.
The news of Gucci forsaking use of animal fur was gladly welcomed by the animal rights organization PETA (People for the Ethical Treatment of Animals) which has long protested against the use of animal fur in fashion industry.
With plans for giving away the proceeds to Humane Society and Italian animal rights organization LAV, Gucci’s remaining animal fur items will be sold at auction.
Meanwhile, citing the ongoing popularity of the Gucci brand, analysts at UBS investment bank have increased the price target of parent luxury group Kering to 385 euros.
“We believe there is still more upside to earnings and FCF (free cash flow) from Gucci’s renewed momentum than the market is pricing in, and sit 5 percent ahead of 2018 EPS forecasts,” said the UBS research.
Although it noted upgrades at Gucci are partly offset by headwinds from the stronger euro, UBS has raised its 2017 estimated EPS (earnings per share) by 3 percent and its 2018 estimate by 1 percent, ahead of third-quarter sales figures.
At the current P/E (price over earnings) levels, the company would trade at a greater than 10 percent discount to the sector and the company would also sit in a cash positive position should Kering’s Puma brand be sold off, UBS added.
(Adapted from CNBC)