Gucci loses out to Vuitton as fashion cache fades

Gucci, the biggest money maker for Paris-based retailer PPR SA, may report a 5.8 percent increase in second-quarter sales after losing customers in the first three months of this year to luxury rivals it had outperformed for three years.

The return of profit momentum doesn't necessarily mean a revival in the label's cachet. Rita Clifton, chairman of London-based Interbrand consulting company, said Gucci may be squandering its high-end credentials for more mainstream growth.

"There's a real danger zone at Gucci at this moment," Clifton said. "It's easy in these high-pressure times to drive growth by keeping your foot on the accelerator, but they've got to make sure they keep reinvesting in top-end luxury."