In light of the outstanding first half results and continuing strong business trends, management reiterates its belief that the Group will achieve full year diluted net income per share of at least US$ 3.10.
Management further believes that the Group will achieve full year revenues of at least US$ 2.2 billion and an operating margin before goodwill and trademark amortization above 17.0% in the second half of 2000.
Domenico De Sole, President & Chief Executive Officer of Gucci Group N.V.
commented:
"We have had an outstanding second quarter. The key has been the extraordinary growth of Gucci Division. The Division's revenues advanced 27.7% and it achieved an operating margin of 27%, including a Division monthly record operating margin of 35% in July. Gucci Division is reaping the benefit of our long term commitment to disciplined brand management. We have limited doors to the best locations, invested wisely in our store personnel and image, and kept general expenses under control.
The renewed economic strength in key regions, together with the great success of our recent product collections, has enabled us to realize powerful operating leverage.
We have also enjoyed great success in the integration of our recently acquired Divisions. Second quarter highlights have been the continuing reorganization of Yves Saint Laurent Couture and YSL Beauté where we have made great strides towards achieving operating efficiencies in all key markets including France, Italy, the United States and Japan.
Yves Saint Laurent Couture has continued its aggressive program to eliminate licenses and inappropriate product lines and distribution channels, while YSL Beauté has moved to reduce substantially sales to grey market channels. The response from the trade to these initiatives has been very positive.
As planned, the management of our brands, Yves Saint Laurent, Sergio Rossi and Boucheron are pursuing numerous new store opportunities and we expect to make exciting announcements as we close deals in the coming months.
I believe that we are well positioned for continued success through the remainder of this year and well into 2001".
