Mar 29, 2003/ FW/ -- The multi-brand luxury group composed of Gucci, Yves Saint Laurent, Sergio Rossi, Boucheron, Alexander McQueen, Stella McCartney, and Balenciaga has posted a net profit of 226 million Euros for 2002, a decline of 27% from the previous year.

The net stock value of 2.21 Euros a share still exceeded analyst's predictions.

In 2002, the turnvoer of the Gucci Division fell by 9.6% to 1,536 billion Euros.

During the past year, the group spent 290 million Euros in publicity for its labels and another 220 million for the opening and renovation of boutiques.

Domenico De Sole, CEO of Gucci Group stated that he was "satisfied at the results, especially the resilience of the group against falling consumer demand, growing geopolitical uncertainly and a weak economy."

The Group has not given any earnings forecast for the first quarter of 2003.

PPR luxury conglomerate, owned by French millionaire François Pinault recently acquired 61% of the stock of Gucci Group, setting off rumors that Domenico De Sole, and Artistic Director and Vice President Tom Ford might not be long for their jobs.

Mr. De Sole has vehemently denied the rumor, and as if to prove the point, appeared with Serge Weinberg, President of PPR, front row and center at the recent Stella McCartney show during Paris fashion week.