NEW YORK — Gucci Group is scaling back the U.S. retail operations of its money-losing Yves Saint Laurent brand.
A 2,400-square-foot YSL store at the Americana Manhasset in Manhasset, N.Y., was quietly shuttered just weeks ago. The boutique opened in 2003 as part of the Americana Manhasset’s expansion. It’s being replaced by an Oscar de la Renta shop.
There also is speculation Gucci Group may be considering the closure of YSL’s stores on Madison Avenue in New York and at the Bal Harbour Shops in Bal Harbour, Fla.
However, a YSL spokeswoman said Monday, “We are absolutely not closing Madison Avenue or Bal Harbour. The Madison Avenue store has been in the company forever. It was the first store worldwide next to the one in Paris. It’s important to the company. Manhasset was an isolated decision.”
An Americana Manhasset spokeswoman could not be reached for comment.
YSL’s 12,800-square-foot flagship at 855 Madison Avenue was redesigned with great fanfare in 2002 by the brand’s former creative director, Tom Ford, who said at the time, “This is a great location; it has a lot of history for the brand.”
But retail executives wondered whether Manhattan could support two YSL stores in close proximity, as there is another unit at 3 East 57th Street.
Two sources said Gucci Group is negotiating with Ralph Lauren about taking over YSL’s Madison Avenue space. A spokeswoman for Polo Ralph Lauren could not be reached at press time.
Lauren is signing leases throughout the city. He inked a deal at 31 Prince Street for a Double RL store and has signed a lease for a third store on Bleecker Street, at number 390, formerly Susan Parrish Antiques. In addition, Lauren has reportedly leased a spot on University Place for his new Rugby concept.
When Gucci Group’s first-quarter results were announced in April, sales at YSL dropped 3.6 percent to 39 million euros, or $51.2 million at average exchange, marred by logistical problems and meager wholesale orders from retailers.
In May, at the company’s annual meeting, Francois-Henri Pinault, chairman of PPR, the parent of Gucci Group, was upbeat on luxury, though he declined to set a breakeven date for YSL, which last year lost 69.3 million euros, or $87.6 million at current exchange.
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Meanwhile, the Gucci brand is scaling down its boutique at 846 Madison Avenue between 69th and 70th Streets. A real estate broker involved in the negotiations said Gucci is offering two smaller portions of space but will maintain a presence.