This increase is due in part to the performance of Valentino, acquired in June 2002.

This is good news for the Marzotto Group which saw its profits fall for 2002, reporting 42 million euros in net profit last year, compared to 56 million euros in 2001.

Despite a slump in their profits, the group was still able to shell out 23 million euro to its shareholders in the form of a dividend payout due to an increase in its net turnover, posting $1.78 billion euros for 2002, compared to $1.75 billion in 2001.

The group's business is divided between textile and apparel, with 17% of the income generated by the textile section while the apparel business has the lion's share at 83%.

Marzotto's business continue to be Europe-based, with 834 shops (73%) of its apparel global distribution in the continent.

North America accounts for 16% with 63 shops, while Asia accounts for 7% with 239 shops.

Valentino which was acquired in June 2002 proved to be a major asset for the company, with its continued strong performance during the first quarter of 2003.

With a trail of Hollywood celebrities, which include Jennifer Lopez, Gwyneth Paltrow and Kate Hudson, still enamoured by the velvet touch of a fashion legend, the House of Valentino has been going through something of a Renaissance as of late.

With a total of 73 shops in three continents (Europe, North America and Asia), the Valentino brand continue to dominate the world of high fashion.

Though there is a consensus that Haute Couture is dying, Haute Couture still accounts for 3% of Valentino's sales. The lion's share of the brand's turnover is still the ready-to-wear line at 75%, accessories at 15.1% and licenses at 11.4%

Both the Ready-to-Wear and Haute Couture lines for women are shown in Paris, while Valentino men's wear remains a star of Milan.

The Marzotto Group continues to execute its vision for the Valentino brand since its acquistion with the mantra "Increase brand accessibility while safeguarding the myth."

While Marzotto is agressively marketing the core luxury brands of Valentino, it is also developing a diffusion line geared towards the younger generation who are discovering Valentino for the first time.

The group's strategy of 'protecting the existing clientele while developing new ones' seem to be working, with the strong financial results for the first quarter.