gucci is not quite as stellar as it has been in the pass. gucci is the cash cow.k of revenue comes from. it has been hurt in china and has been losing the consistency of products, losing its sexiness in terms of what tom ford has brought to the name. the performance has been down. there was a notable improvement in the final three months. we are suddenly seeing freshness being injected. a new chief executive. he is going to be taking the helm and trying to drive gucci forward trying to continue to improve. they have a new creative director as well. they promoted him from within. they need to inject the newness and consistency that analysts want to see. it is interesting to see where they are doing well and where they are trying to distance themselves. they are doing well in the united states doing well in japan. they are trying to shave the risk going forward. >> they want to grow organically. it is a fascinating story. the very latest on kering. >> we have the boss on tomorrow. ♪ >> welcome back to "the pulse." i'm francine lacqua. >> i'm guy johnson. >> the ecb

. >> gucci continues to be the weakness in the armor. gucci has really suffered from weakness in chinese demand, if they lost their way, their air of sexiness. but they are making big changes over in karen grew. -- group. we are expecting an increase of 7% in sales. when you are looking at a particular brand gucci is likely to see falls. meanwhile, vanessa is going to rise 9%. some good rise as much as 70% -- 17%. it is the executives who are falling in or out of fashion overall, because energy'-- because gucci's executive has been rearranging. take the vanessa executive and christopher ckkane, in sergio rossi -- they will see some improvement. >> another french business reporting today a leading french mobile phone company. they are talking about looking for a continued improvement in the chief performance indicators despite the competitive environment. it is because of that level of competition that we have all this talk about m&a. it was talking about buying some companies -- that would actually move orange out of the mobile phone mar

i had the gucci loafers, gucci sandals and the gucci tennis shoes. >> man, i'm hungry, golly. >> brewer says she usually sells the stolen items for money to feed a heroin and cocaine addiction she developed at age 22. 40 years of drug use has destroyed her teeth. >> i ain't got no teeth. this here is my gums. >> brewer says she also suffers from diabetes and had to start using a cane because of back problems. but when it comes to flexibility, she can still show up some inmates young enough to be her grandchildren. >> i heard you still do the splits. now -- >> hold this. >> i mean, i was kind of stunned at first when i first saw her do it. i was like, oh, my goodness. >> let me do it the other way too. >> she's an old lady, you know. she has a cane. i can't do the splits. and here she is, doing the splits. >> go! >> i'm more amazed she can get up from them. she'll just drop it like it's hot just like that. >> and then bounce on it and get up. and you wouldn't know that i had a bad back in doing all that. >> that's right. >> that's why i won't get well, because i'm hard-hitting. >> althou

of course, we are in gucci. a flat improvement in q4.u have named a new creative director. how have you turned it around? >> strategy is still to elevate the brand, considering the size. if we want more potential of growth at gucci, which is the -- of the brand, we need to bring that strategy. what is to be improved significantly is the execution of the strategy. in particular, we think that by opening a new chapter in terms of creative direction we can give a new status to the brandt in terms of attractiveness that would be beneficial in the future. we are working on that direction. a new image, new products, new creation. as i said, we will seize the first impact of the new management, of the new creation team in the second semester of this year. we will be active first semester by all this action plans. this year, 2015, we will have the first results. caroline: how would you describe the luxury markets in 2015 compared to 2014? >> the market will continue to grow structurally. it will be very complicated. not only geography are moving

how long has he been in gucci?t is not a turnaround -- the point is that the strategy will consider the size. if we want to have more potential of growth, we need to be in that strategy. it will him -- the execution of the strategy. we think that by opening a new chapter in terms of creative direction, we can give a new status to the brand in terms of attractiveness. that would be very important in the near future. we are already working on that direction. a new image, a new product, new creation. as i said, we will receive the first impact of that new management, that new creation team, in the second semester of this year. we will have the first semester and all those action plans, but this year we will have the first results. >> how would you describe the luxury market in 2015 compared to 2014? >> the market will continue to grow structurally. it will be very complicated, because not only is geography moving in terms of growth, america will continue to grow -- i think it is still strong market, we have a strong p

. >> you got your gucci. >> yes. >> gucci main. >> yes. >> and your louie. >> yeah, louie v is in theget all these at century 21. >> a lot of people think i cannot afford this. >> good morning. >> you want to say good morning, customers are coming. do you want to say good morning to alex and mike. >> hi, alex and mike great to be here. thanks for having us on the show and come down to the store we are having so much fun with jen. >> now eddie listen, you have upped your game and good morning to you by the way. >> good morning. >> are we calling this a pop up shop or just store inside of the store. >> it is a store inside of a store, shop in shop. >> in some of the or parts of the store we cannot kiss and tell we cannot say names of the fancy pants stuff you have but here we can name drop like it is our job. >> absolutely. >> why did you want to have these things in your store. >> well, our company, century 21, they are the the same. our dna is the same. we offer value, we deliver it every day on high even designer, vintage cure rated, accessories, all these handbags and that is what c

gucci is a struggle. we will talk more after this. >> welcome back. we are into the trading session. stocks down. looking over in france and the beat for luxury. caroline hyde joins us with more. i do not know how much you can read with this. you have the stocks and equities down. the standout performers for these guys. >> you are looking at the reaction and they say there is not much of an impetus to set the stock higher. we are seeing shares down and you are right that 25% increased in sales. lake road that this was the brand in the industry. interestingly, we are seeing a bit of a slowdown in the jewel of the crown and seeing 7% growth. what has come as a massive relief is that they are not fairing any worse. there is a little bit of lightness in terms of the numbers and it is falling by half of a percent. they are saying there is an improvement notably and it is all about fine tuning. that is what they're worried about. they have weakness in china and it sees a drag in the past few months. overall, 710 pounds. i'm sure you love them. could seems t

david sanchez/ vocero ftc "les prometan productos de alta mercanca por ejemplo gucci o ralph laurent productos se supone que los consumidores los podan revender y tenan que pagar por adelantado cientos de dlares entre $400 y $490 dlares" la comision federal de comercio recopilo testimonios de varias personas.. estos son los documentos de una demanda que se presento contra la empresa que operaba tambien bajo el nombre de 'oro marketing'.por orden de un juez la compaÑia tuvo que detener temporalmente su alegada actividad delictiva en estados unidos. "los consumidores reciban un producto que no era lo que se supone , es decir que reciban unos productos de muy mala calidad" y al tratar de comunicarse para hacer el reclamo .. "a los que se negaban a pagar se los amenazaba con demandas ficticias adems de denuncias a las autoridades migratorias" los abogados de los acusados no respondieron nuestras llamadas .. encontramos la direccion con la que esta registrada la empresa y...bridge: vinimos a una de las sedes de la compaÑia aqu en los geles y psaen esteificio nos pidieron tirarnos diciendo

take sot david sanchez/ vocero ftc 18:19:07 "les prometan productos de alta mercanca por ejemplo guccir y tenan que pagar por adelantado cientos de dlares entre $400 y $490 dlares" la comision federal de comercio recopilo testimonios de varias personas.. estos son los documentos de una demanda que se presento contra la empresa que operaba tambien bajo el nombre de 'oro marketing'. por orden de un juez la compaÑia tuvo que detener temporalmente su alegada actividad delictiva en estados unidos. take sot ftc 18:19:38 "los consumidores reciban un producto que no era lo que se supone es decir que reciban unos productos de muy mala calidad" y al tratar de comunicarse para hacer el reclamo .. "a los que se negaban a pagar se los amenazaba con demandas ficticias adems de denuncias a las autoridades migratorias" los abogados de los acusados no respondieron nuestras llamadas .. encontramos la direccion con la que esta registrada la empresa y... denny alfonso/los angeles bridge: vinimos a una de las sedes de la compaÑia aqu en los angeles y personas en este edificio nos pidieron retirarnos, dicie

i want to put a designer on my face, gucci, versace. >> on the weekends, they drive six hours to cashon a once a year business opportunity. at first glance, myrtle beach is exactly what it sounds like, a beach town. but every spring, millions of men flock here for the three-month-long golf season. there are apparently over 100 golf courses here. and where there are loads of golf courses there will be throngs of men. and where there are throngs of men, there will inevitably be throngs of strippers. tucked amongst the tourist shops and restaurants are more than a dozen gentlemen's clubs. one of the most famous, the dollhouse, has been a fixture in myrtle beach for over 20 years. how are you tonight? >> good, thank you. >> so tell me about this place, the dollhouse. >> the managing partner wants to get something straight right up front. >> we're not a strip joint. there's a vast difference. >> what's the difference? >> gentlemen's club provides entertainers. our girls are wearing gowns, opposed to, i call it hoochy mama outfits. they are entertainers. they act like entertainers. >> what

and so with that in mind, i wanted to read -- i took a look at showdown at gucci gulch and the first chapter and i think it is worth the historic perspective and i would just ask you to respond to us. the groups with an interest in the existing tax system were well organize and ready to defend the tax breaks at a moment's notice. the tax populous were unorganized and diffuse. furthermore congress was a slow and cumbersome institution -- that is not true any more, of course -- that only made piecemeal changes. this produced a revamping of the tax structure. there was a tremendous inertia in congress that resists any such sweeping change as a result they held that tax reform was destined to lose and the conventional wisdom had plenty to back it up. tax breaks, after all, had been part of the currency of congress. this passage, i would say is even truer today than it was 30 years ago, as a description of where we are, just in 2014 federal lobbying totaled over $3.2 billion. i wonder if you could take us inside of that room you talked about and tell us as senators how you were able to ov

put in the towers are generally those that are of higher value, things such as the pradas, fendis, guccis and so forth. >> the next morning, he takes a look at the video and can't believe the spectacle at his eye glass store. the damage amounts to almost $25,000. >> i was somewhat in a daze, and it was somewhat unbelievable the extent of the violence of this break-in. i don't quite even get why it was necessary on the part of the perpetrator. >> but earlier in the week, a similar crime occurs at the store. security cameras are immediately installed, and they catch this second robbery on camera. snarr believes it's the same suspect. >> it's my opinion that that first crime was more of a case to test the alarm system. >> in october of 2010, police arrest 39-year-old adrian irving on charges of breaking and entering and vandalism. two months later, he pleads guilty. he's sentenced to three years in prison. it's all thanks to the 20/20 lens of the surveillance camera. >> it's not that expensive when you get the payback or the reward, when you catch them like this on film. it can go a long way

. >> he later gets a complaint about some gucci frames from plimer's shop as well. >> they definitelyreported back to us that no, these are phony, that they were counterfeit. [ bleep ] >> plimer denies that accusation and before this february 2007 attack, silverman has several conversations with plimer both on the phone and face-to-face. >> he refused to acknowledge what he was doing all the way down the pike. >> then one morning, silverman says he receives an unusual call from plimer. >> we got that famous phone call in the morning of saying that he had found god, he found religion, he was going to pay restitution, he wanted to talk to me. >> silverman arrives at adam plimer's optical store and is blindsided by what follows. >> oh, i'm sorry. did i hit you? >> he opens it up and just slams it in my face. >> oh, i'm sorry. >> then he grabs the papers out of my arm and starts whacking me with those. >> what, you going to hit me? you going to hit me? >> and it just escalated. >> plimer even spits on silverman. >> [ bleep ] you. >> and every time he comes out, he seems a little more enra

popular designers from gucci and chanel. lower end stuff too. >> yes.the most anybody who listed on there made? you must look all the time? >> we actually have a seller about to hit a million dollars. liz: what? >> she is professional seller, of our individual women who are selling from their closets, women make on average a little over $1,000 a year. liz: i have dollar signs in my eyes, selling my anchor dresses for our wounded vets. >> you could sell that dress right off your back if you wanted to. somebody would love to wear this. liz: this one? >> style. liz: the designer is santini. it is so cozy. perfect. after the show, i will take this off. i will put it on tradesy. i have a whole bunch dresses going to buildinghomesforheroes.org. >> good for you. >> she is disrupting your closet. tracy dinuzio to tradesy. "after the bell" facebook page and twitter page, @fbnatb. quick, run, hurry. a lot people are going on there. david. david: good stuff, good cause. next we go live to los angeles ports for the latest on a dispute causing american businesses hu

there are the absolute luxury brands and then there are the brands like gucci and prada luxury labelsasses. they go on wholesale and they go on sale. what is the distinction between the two categories? mortimer: the price points are on the same level. the waiting in them is lower, so you are able to get a broader customer. some brands are above the brands listed on that page, like a chanel. more limited distribution and have a higher price point. brendan: help me out with someone who is dimly aware with who or what tory burch is. she provides an architecture under the lowest price point to make it aspirational. what does that mean? mortimer: any brand that has a sense of luxury is aspirational. chanel is aspirational. they are using the word to allow a more a customer that cannot typically afford the higher price point brand to come into that way of life. rendon says step into the shop and buy a scarf. mortimer: you can also buy a handbag that may cost $700. it may feel the same, but not be the same quality. to the layperson, they get the feeling of being part of the story. it is abou

you come from gucci. you come from harrods. you come from understanding brands.t kind of thing is he bringing to the party? >> he has brought brilliance truck sure. we are seeing brilliant businesses go from strength to strength. it is about having transparency, sharing the support they can access all whole host of industry experts. there is going to be a picture of james and 40 individuals and really think about starting right through the future brands they are going to be working with. >> to the young designers have that ambition for scale? have they got that ambition to be burberry? >> absolutely they do. there is a huge degree of creativity and that is what drives them. the creativity creates business. >> it's interesting you pull in a financially ambitious dynamic because it's an incredibly important part of british business. give me an idea of how they have come through on scale. >> he opened his door yesterday. you see these young designers really deliver creatively to become the stars of the fashion week and then build incredible businesses. there are all

this upward mobility of the glasses and you see it in -- the classes and you see it in the sales of guccietc. olivia: do you want to get into british equities? david: you want to get into british equities because you are able to find good companies that are selling at low prices that are good stewards of shareholders capital, etc. again, the disconnect and trying to make here is you just don't look at what is happening on the ground in the local economy. you look at the business from our consideration to characteristics, price and quality. if it is a low price and quality business, you buy it. richard: i think it does depend on the business. he's exactly right to my in china, you have those that were operating on subsistence that are now entering the class. it is country by country, i think. olivia: a quick right turn we want to ask your twitter question of the day. we are asking you, can there be peace with putin? ♪ tom: good morning, everyone. oil over 50 just barely. here is brendan greeley. brennan: yesterday the -- brendan: yesterday, the present looked up his veto pen and said oil w

it means the coaches of the world and the gucci's of the world will outperform their peers.er digitally, your in-store sales go up. >> how does this change the store? you say it has to be a warehouse but also an experience. >> you will pick up that organism blush that your wife wants from so for a -- from sephora. what is more convenient than ordering it from amazon is to go downstairs to the store down the block and pick it up. >> in the meantime, please answer our twitter questions. do the oscars matter to you? we will be back in a moment. bloomberg is back "on the markets" in 30 minutes. >> good morning. this is bloomberg surveillance. we are just one day after the oscars. it was a media frenzy conversation. it will be a media frenzy. betty liu joins us now. she will be talking about some of the hot button issues in the media landscape including this big question of will rupert murdoch go after time warner again. >> oscars given us an excuse to talk about hollywood again. there were a lot of surprises and some snubs. for us in business what are the big surprises that migh

. >> i'm wearing gucci. >> i spoke with common earlier and he said the collaboration, it just sort ofne, actually. i was touring in london, and he was in l.a., and they were working on the edit of the film and ava said we need a song for the closing credits and common called me and said, john, i need help with a song. and so we did the song and i wrote the chorus and the bridge and sent it to him and he wrote the rap and made a song. >> will you let a little rain stop you guys? >> no. the tent will stop the rain. >> are you nervous at all? >> not yet. i might get nervous when it's closer to time to perform. i'll be nervous then and then they announce the award right after that, so i'll be nervous. >> thank you very much. >> thank you. >> chrissy, you look fantastic. >> you look all right. >> thank you, guys. >> eddie redmain, michaela pereira. >> i see qwest love right behind you. my boy! >> there he is! >> we're cold and we're wet and the fact is they better get the rest of those stars inside because they're absolutely going to melt. >> this is every starlet's anxiety. >> this is #re

>> i'm wearing gucci. >> once you got together it poured out. >> we did it over the phone, actually. l.a., and they were working on the edit of the film. and they said we need a song for the closing credits, and common called me and said i need help with a song. i wrote a chorus and the bridge and sent it to him, and he wrote the rap and we had a song. >> are you going to let a little rain stop you guys? >> of course not. this tent is going to stop the rain. i might get nervous when it's close to time to perform. i'll be nervous then. and then they announce the award after that is correct so i'll be nervous then. >> krissy, you look fabulous. >> thank you. >> they were good sports. and this performance, john stevens, and loni lin. that's her real name. what did you think of the performance? >> really mesmerizing. >> i had a long chat with john legend. and he was talking about how he doesn't get nervous, but he was nervous for the rehearsal of this. >> that john legend can sing, can't he? >> he's one of the greatest. >> there was emotion in the theater, emotion where i was. people wer

he famously left the gucci group in 2004. he had a midlife crisis. he come back with his own brand.to meet the great man himself. >> i think like everyone emerging markets with china and china is still very very important market. there's been a bit of a downturn in the china economy lately and middle east. terrific customer base in the middle east. right now our next stores opening are in america. we're opening miami, we're opening atlantic we're opening houston all this year. we're opening a few new stores in the middle east as well this year. but, you know, south america is important. but globally it's interesting because africa in certain places has become important and africa has become a powerful luxury consumer. so it's, you know, fashion is global today. everything is global. if you don't think globally i don't think you can really be in business. >> what about the current geopolitical inability. what is going on in russia and the middle east? >> it is definitely affecting business. absolutely affecting business in the luxury sector. i think we have been affected less than ot

reporting this morning, gucci not doing well saint laurent doing well.ery price insensitive. >> robert burke was great last week. >> i'm glad we got to olivia on this. congratulations. that is something apple has learned as well. our twitter question of the day -- we're asking it today. tweet us @bsurveillance. ♪ >> good morning, "bloomberg surveillance." i want to officially say i hate helima croft. first, top headlines. >> eastern pakistan, at least five people are dead following an appearance is that bombing this morning when the bomber attended to enter a police complex. the police chiefs said several others were wounded in the blast and some nearby buildings caught fire. there was no immediate claim of responsibility. japan is waiting further into the global fight against islamic extremists. providing $15.5 million in development for anti-terrorism initiative. the foreign minister says the contribution incentives -- is to bolster. japan's moves follows the recent beheadings of citizens held hostage by islamic state militants. officials in china are

we talked about gucci gulch and wonderful descriptions in it about the lobbyists who would wait in line outside of the ways and means room for a phone booth. well, today a lobbyist is going to sit in the back of the room and set in motion a tweet that is in effect probably going to go to millions or tweet directly to millions from the back of the room. so simplicity is going to be hugely important and i think there are some contenders for how to do it and senator bradley mentioned one in his testimony with respect to the information that the irs, in effect, has in giving the citizen an option of in effect having the irs mail something, it wouldn't be required, just an option. the postcard concept, in effect, you can put a tax return on the back of a w-2 and that is something worth exploring. i'm also interested in looking we'll be following up with the two of you, on the idea that if you triple the standard deduction and a number of senators of both political parties are interested in a significant increase in the standard deduction, you don't have so many people itemize and that is ano

and we talked about gucci gulch and wonderful descriptions in it about the lobbyists who would wait in line outside of the ways and means room for a phone booth. well today a lobbyist is going to sit in the back of the room and set in motion a tweet that is in effect probably going to go to millions or tweet directly to millions from the back of the room. so simplicity is going to be hugely important and i think there are some contenders for how to do it and senator bradley mentioned one in his testimony with respect to the information that the irs, in effect, has in giving the citizen an option of in effect having the irs mail something, it wouldn't be required, just an option. the postcard concept, in effect, you can put a tax return on the back of a w-2 and that is something worth exploring. and i'm also interested in looking, we'll be following up with the two of you, on the idea that if you triple the standard deduction and a number of senators of both political parties are interested in a significant increase in the standard deduction, you don't have so many people itemize and th

and so with that in mind, i wanted to read -- i took a look at showdown at gucci gulch and the first chapter and i think it is worth the historic perspective and i would just ask you to respond to us. the groups with an interest in the existing tax system were well organize and ready to defend the tax breaks at a moment's notice. the tax populous were unorganized and diffuse. furthermore congress was a slow and cumbersome institution -- that is not true any more, of course -- that only made piecemeal changes. this produced a revamping of the tax structure. there was a tremendous inertia in congress that resists any such sweeping change as a result they held that tax reform was destined to lose and the conventional wisdom had plenty to back it up. tax breaks, after all had been part of the currency of congress. this passage i would say is even truer today than it was 30 years ago, as a description of where we are, just in 2014 federal lobbying totaled over $3.2 billion. i wonder if you could take us inside of that room you talked about and tell us as senators how you were able to over

so with that in mind i wanted to read -- i took a look at "showdown at gucci gulch" in advance of your arrival. i think it is worth the historical perspective. i just ask you to respond to it for us. the groups with an interest in the existing tax system were well organized and ready to defend their tax breaks at a moment's notice. the populous who stood to benefit from lower rates were unorganized and diffuse. furthermore, congress was a slow and cumbersome institution -- that's not true anymore, of course -- that usually made only piecemeal inskremtcremental changes. tax reform proposed something very different -- a radical revamping of the entire tax structure. there was a tremendous inertia in congress that resisted any such sweeping clang. pass a result, the conventional wisdom in washington held that tax reform was den continuestined to lose and conventional wisdom had plenty of history to back it up. tax breaks, after all, had always been part of the currency of congress. this passage i would say is even truer today than it was 30 years ago as a description of where we are. just