Apr 19, 2003 /FW/ --- Together with Tom Ford, Domenico De Sole, President and CEO of the Gucci Group, revitalized the then 'tired' Gucci label during the 1990s.

The House of Gucci, racked by a family scandal was nowhere the stature it is today when this dynamic duo took over.

De Sole, who sits at the Board of several big U.S. companies (which includes Procter & Gamble) played a leading role in re-establishing the exclusivity and profitability of the Gucci brand.

He achieved this by focusing on Gucci's core leather products, investing in advertising and communication, as well as in men's and women's fashion ready-to-wear.

Last February, there was widespread rumor of the impending withdrawal of both Tom Ford and Domenico De Sole from Gucci.

De Sole denied the rumors in two Italian publications - "La Repubblica" and "Il Corriere della Sera," in which he stated that he and Tom Ford would stay on board beyond 2004, as long as the company continues to embrace the independent management style they instituted.

Last month, when the Gucci Group posted their 2002 financial results with 2.21 Euro EPS, which is better than their guidance, the whisperings were all put to rest.

And with the Gucci Division also posting an impressive operating margin of 29.1% despite a very difficult retail environment for 2002, even the doubters believed. After all, numbers do not lie.

In a company presentation last March 27, Domenico De Sole talked about the Gucci Group's operations and achievements.

"This has been a year of considerable investment in the development of our brands. I am pleased by our achievements, particularly the Group’s resilient performance in the face of slower consumer demand, increasing political uncertainty and a weak global economy," commented Domenico De Sole about the Group's better than expected performance.

He attributed the Group's performance to their cost reduction and tight inventory controls, achieved partly through reducing markdowns and operating expenses.

As a result, the Gucci Division delivered a 35% operating margin for the fourth quarter of 2002.

Talking about the Group's other star brand, Yves Saint Laurent, De Sole reported that YSL increased retail sales to 75% for 2002 and doubled wholesale sales during the fourth quarter.

YSL Beauté, which handles the fragrance and cosmetics business for the brand posted 16% revenue growth for the 4th quarter, a direct result of Yves Saint Laurent's brand repositioning.

Closing, De Sole commented that although he is very optimistic of the future, the Group is also very cautious due to a very uncertain retail environment.

He emphasized that the management focus remains committed to delivering enhanced performance in all of their operations.

And with a very strong upcoming collections which has generated extremely positive press coverage as well as strong demand from the trade, coupled with improved distribution networks, all of the brands in the Gucci Group umbrella will continue to thrive.