SALES UP 85.3% IN 3RD QUARTER AT GUCCI GROUP
NEW YORK — In its first report since going public last month, Gucci Group NV said sales soared 85.3 percent in the third quarter and 86.4 percent in the nine months. The company did not specify profits. Like many European companies, Gucci reports earnings only twice a year. Investors seemed confident, though. Although the sales report came after the close of the market, Gucci stock rose 1 7/8 to 36 7/8 on the New York Stock Exchange Tuesday.
In the quarter ended Oct. 31, total sales climbed to $136.1 million from $73.5 million.
Sales through directly operated stores advanced 95 percent to $95.8 million from $49.1 million, and wholesale volume jumped to $27 million from $11.7 million. Wholesale figures include franchise stores, duty-free boutiques and department and specialty stores. Other sales and royalties increased 5 percent to $13.3 million from $12.6 million. Breaking down sales by product, the firm reported leather goods sales more than doubled to $66.4 million from $30.7 million. Shoe sales also more than doubled to $24.9 million from $10.9 million. Sales of ready-to-wear gained 46 percent to $19.5 million from $13.4 million. Sales of ties and scarves grew 51 percent to $8.3 million from $5.5 million. Sales of other products including royalties moved ahead 31 percent to $17 million from $13 million. Gucci chief executive officer Domenico De Sole attributed the strong results to “the strength of the Gucci brand and the extraordinary success of the repositioning program.”
He also said the strong sales increases were due to the “successful response to our fall collection, which was very well received by our customers, both at retail and at wholesale by our stores.” He said, “These results show that the trend established in the first six months is continuing throughout the year.
“Fiscal 1995,” De Sole said, “will be a record year for the company, and we continue to make efficiency and productivity improvements that will enhance Gucci’s position in the periods ahead.”
In the nine months, total sales climbed to $342.3 million from $183.7 million. Sales at directly operated stores doubled to $249.1 million from $122.5 million, and wholesale volume advanced to $59.8 million from $27.9 million. Other sales and royalties inched up 1 percent to $33.4 million from $33.2 million.
Sales of leather goods surged to $169.8 million from $75 million, and shoe sales climbed to $61.8 million from $26.6 million.
Ready-to-wear sales rose 39 percent to $45.2 million from $32.5 million. Sales of ties and scarves were up 45 percent to $23.4 million from $16.2 million. Other product and royalty sales moved up 26 percent to $42.1 million from $33.4 million.
— Fairchild News Service