Amsterdam, The Netherlands, September 26, 2002: Gucci Group N.V. (Euronext Amsterdam: GCCI.AS; NYSE: GUC) today announces results for the second quarter ended July 31, 2002.
SECOND QUARTER KEY FIGURES
Revenues: € 577.1 million, compared to E 620.1 million last year (-6.9%)
Operating profit before goodwill and trademark amortization: E 62.4 million (10.8% margin), compared to € 105.8 million (17.1 % margin) last year (-41.0%)
Net income: € 42.8 million, compared to E 95.4 million last year (-55.1 %)
Fully diluted net income per share: E 0.41, compared to E 0.94 last year (-56.4%)
Revenues: € 367.4 million, compared to € 428.1 million last year (-14.2%, or -7.5% on a constant currency basis)
Retail sales: € 245.7 million, compared to € 288.8 million last year (-14.9%, or -8.2% on a constant currency basis)
Operating profit before goodwill amortization: E 109.8 million (29.9% margin), compared to € 141.9 million (33.2% margin) last year (-22.7%)
Yves Saint Laurent
Revenues: up 34.7%
Retail sales: up 105.1 % on a constant currency basis
Leather goods sales: up 207.3% on a constant currency basis
FULL YEAR 2002 OUTLOOK
Management has seen positive sales trends develop at the Gucci Division in September. If these trends continue, management believes that the previously published guidance of fully diluted net income per share in 2002 of at least é 2.60 is attainable. However, the uncertain global political environment, volatile financial markets and weak economic growth make trading conditions in the luxury goods industry difficult to predict. If the trading conditions deteriorate, management believes the Group's 2002 fully diluted net income per share may not reach the E 2.60 threshold.
Management's current belief concerning other indicators of the Group's performance in 2002 is as follows:
Group revenues of approximately C 2.6 billion, compared to E 2.7 billion previously
Gucci Division revenues of approximately é 1.6 billion, compared to é 1.7 billion previously
Group operating margin before goodwill and trademark amortization of approximately 13%, compared to 14% previously
Gucci Division operating margin before goodwill amortization of approximately 30%, unchanged from previous guidance
Domenico De Sole, President and Chief Executive Officer of Gucci Group N.V., commented:
'I continue to believe, based on the most recent sales figures, that the Gucci Group can meet its 2002 objective of fully diluted net income per share of at least F 2.60. However, there is the risk that demand, in the face of global political-economic turmoil, may weaken, causing our results to fall short of this objective.
Gucci's profitability in the second quarter remained strong in a very difficult environment, with the division delivering a remarkable operating margin before goodwill amortization of nearly 30%. This result was achieved thanks to a strong gross margin and our ability to maintain rigorous cost control during a period of reduced consumer confidence.
We are particularly pleased with the performance of Yves Saint Laurent, where retail sales doubled and the gross margin rose to nearly 60%. Retailers, notably the high-end department stores in the United States, who are increasingly impressed by the performance of the Yves Saint Laurent brand, have reserved excellent permanent in-store spaces to house its collections. We continue to foresee rapid growth in retail and wholesale sales as the brand expands its customer base.
Looking forward, we continue to have complete confidence in the Group's strategy. Based on our strong financial condition, the acclaim accorded to each of our brands' collections as well as the growth we expect from the more than 60 directly operated stores that we will have opened in 2002, I am confident that Gucci Group will achieve major future growth in both revenues and profit. '
Gucci Group N.V. is one of the world's leading multi-brand luxury goods companies. Through the Gucci, Yves Saint Laurent, Sergio Rossi, Boucheron, Roger & Gallet, Bottega Veneta, Bédat & Co., Alexander McQueen, Stella McCartney and Balenciaga brands, the Group designs, produces and distributes high-quality personal luxury goods, including ready-to-wear, handbags, luggage, small leather goods, shoes, timepieces, jewelry, ties and scarves, eyewear, perfume, cosmetics and skincare products. The Group directly operates stores in major markets throughout the world and wholesales products through franchise stores, duty-free boutiques and leading department and specialty stores. The shares of Gucci Group N.V. are listed on the New York Stock Exchange and on the Euronext Amsterdam Stock Exchange.
Under the safe harbor provisions to the U.S. Private Securities Litigation Reform Act of 1995, the Company cautions investors that any forward-looking statements of projections made by the Company, including those made in this document, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect the Company's operations are discussed in the Company's Annual Report on Form 20-Ffor 2001, as amended, filed with the U.S. Securities and Exchange Commission.
For media inquiries:
Director of Corporate Communications
Gucci Group N.V.
+31 20 462 1700
+39 02 8800 5555
For investors / analysts inquiries:
Cedric Magnelia / Enza Dominijanni
Directors of Investor Relations
Gucci Group N.V.
+31 20 462 1700
+39 055 7592 2456