Gucci Group N.V. Announces Record Results for Fiscal 1996; Rise 64.3%
to $2.76 Per Share
AMSTERDAM, HOLLAND (March 27) BUSINESS WIRE -March 27, 1997--Gucci Group
N.V. (NYSE and Amsterdam:GUC) today announced record financial results
for the second half of 1996 and fiscal year ended January 31, 1997.
The Company attributed its financial growth to record performance
across all distribution channels and product categories and in all
geographic regions.
Net revenues for the second half of fiscal 1996, including royalties,
increased 67% to $490.7 million compared to $293.9 million in the
second half of last year. Sales for Directly Operated Stores increased
52.6%, while Wholesale, including Franchise, Duty Free and Department &
Specialty Stores, increased 151.2%. Operating profit rose 71.2% to
$134.5 million versus $78.6 million for the same period last year.
Operating profit as a percentage of sales improved to 27.4% from 26.7%
in the second half of fiscal 1996. Net income increased 74.3% for the
second half of fiscal 1996 to $98.4 million, or $1.61 per share,
compared to $56.5 million, or $1.10 per share in the second half of
fiscal 1995. Net income as a percentage of revenues improved to 20.1%
versus 19.2% in the same period last year. Gross margin for the period
decreased to 65.1% from 65.8% in the second half of last year due to a
higher proportion of sales through wholesale channels.
Net revenues for fiscal 1996, including royalties, increased 76.1% to
$880.7 million compared to $500.1 million in fiscal 1995. Sales for
Directly Operated Stores increased 60.2% and Wholesale, including
Franchise, Duty Free and Department & Specialty Stores, increased
181.9%. Operating profit rose 97.4% to $239.1 million versus $121.1
million last year. Operating profit as a percentage of revenues
improved to 27.2% from 24.2% in 1995. Net income rose 103.1% to $168.4
million, or $2.76 per share, versus $82.9 million, or $1.68 per share,
last year. Net income as a percentage of revenues improved to 19.1%
versus 16.6% in 1995. Gross margins for the year declined to 64.5%
versus 65.9% last year.
Commenting on the results, Domenico De Sole, President and Chief
Executive Officer, stated, "We are proud to report that in fiscal 1996,
Gucci was successful in generating record financial performance which
exceeded our expectations, while also solidifying our position in the
global luxury goods market to prepare for our next phase of growth. We
are particularly pleased to note that with the superb growth that we
have enjoyed over the last two years, our 1996 operating profit
significantly exceeded our total net revenues in 1993.
"During the year, we took many important steps to improve our
operations and further build the strength of the Gucci brand worldwide.
We refurbished and expanded several Gucci boutiques, paying particular
attention to some of our key regional markets including Japan and
Western Europe. We also established a presence in exciting new markets
such as Germany and Belgium. In our operations, we have focused on
upgrading our merchandising and logistic systems and improving our
distribution capabilities in order to support the growing demand for
our products."
Mr. De Sole continued, "The past two years have been a time of
extraordinary growth and success for Gucci. This has provided us with
a strong foundation upon which we are building to support the future
growth of our brand and our Company. In 1997, we will aggressively
pursue expansion and refurbishment projects in our Directly Operated
Store base. Our flagship stores in London, Sloane Street and Beverly
Hills will undergo major renovations and expansions, evolving to a
cleaner, more modern look which is consistent with the image of our
brand and adding important new space to permit an improved and wider
presentation of our products.
"Earlier this month, we premiered our 1997 women's Fall/Winter
ready-to-wear collection which met with excellent response from the
fashion press. Our men's collection which was previewed in January,
also received excellent reviews. In short, we believe 1997 offers
significant potential to raise the standards we have set in place for
Gucci: Leadership in design, excellence in quality and unmatched value
to the consumer."
Gucci Group N.V. is one of the world's leading designers, producers and
distributors of high quality personal luxury accessories. Products
include leathergoods, shoes, ties and scarves, ready-to-wear, watches,
gifts, jewelry, eyewear and perfume. The Company directly operates
stores in major markets throughout the world and wholesales products
through franchise stores, duty free boutiques and leading department
and specialty stores. The shares of Gucci Group N.V. are listed on
the New York Stock Exchange and on the Amsterdam Stock Exchange.
The breakdown of sales for the second half of fiscal 1996 versus fiscal
1995 is as follows: -0-
Net Revenue by Product Line
Second Half Fiscal 1996 Second Half Fiscal 1995
(US $ in millions) (US $ in millions) % Increase
Leather goods $ 283.2 $ 154.9 82.8%
Shoes 85.5 51.4 66.3%
Ties and Scarves 20.8 17.9 16.2%
Ready-To-Wear 42.9 35.1 22.2%
Watches 14.4 9.2 56.5%
Other 21.1 9.5 122.1%
Royalties 22.8 15.9 43.4%
Total $ 490.7 $ 293.9 67.0%
Net Revenue by Distribution Channel
Second Half Fiscal Second Half Fiscal % Increase
1996 1995
(US $ in millions) (US $ in millions)
Retail Stores $ 336.7 $ 220.6 52.6%
Wholesale(a) 121.1 48.2 151.2%
Sub-Total 457.8 268.8 70.3%
Other 10.1 9.2 9.8%
Royalties 22.8 15.9 43.4%
Total $ 490.7 $ 293.9 67.0%
(a) Wholesale includes Franchise Stores, Duty Free Boutiques and
Specialty Stores.
Net Revenue by Geographic Markets
Second Half Fiscal Second Half Fiscal % Increase
1996 1995
(US $ in millions) (US $ in millions)
United States (and
Caribbean) $ 148.5 $ 107.1 38.7%
Europe 99.4 58.8 69.0%
Asia 207.5 104.8 98.0%
Rest of World 12.5 7.3 71.2%
Royalties 22.8 15.9 43.4%
Total $ 490.7 $ 293.9 67.0%
The breakdown of sales for fiscal 1996 versus fiscal 1995 is as
follows:
Net Revenue by Product Line
Fiscal 1996 Fiscal 1995 % Increase
(US $ in millions) (US $ in millions)
Leather goods $ 517.2 $ 258.3 100.2%
Shoes 154.7 88.3 75.2%
Ties and Scarves 40.5 33.0 22.7%
Ready-To-Wear 75.5 60.8 24.2%
Watches 23.1 15.4 50.0%
Other 31.2 16.0 95.0%
Royalties 38.5 28.3 36.0%
Total $ 880.7 $ 500.1 76.1%
Net Revenue by Distribution Channel
Fiscal 1996 Fiscal 1995 % Increase
(US $ in millions) (US $ in millions)
Retail Stores $ 598.9 $ 373.9 60.2%
Wholesale(b) 228.3 81.0 181.9%
Sub-Total 827.2 454.9 81.8%
Other 15.0 16.9 (11.2)%
Royalties 38.5 28.3 36.0%
Total $ 880.7 $ 500.1 76.1%
(b) Wholesale includes Franchise Stores, Duty Free Boutiques and
Specialty Stores.
Net Revenue by Geographic Markets
Fiscal 1996 Fiscal 1995 % Increase
(US $ in millions) (US $ in millions)
United States (and
Caribbean) $ 275.0 $ 178.0 54.5%
Europe 173.4 99.5 74.3%
Asia 374.0 178.7 109.3%
Rest of World 19.8 15.6 26.9%
Royalties 38.5 28.3 36.0%
Total $ 880.7 $ 500.1 76.1%
GUCCI GROUP N.V.
SUMMARIZED FINANCIAL RESULTS
(In millions of U.S. Dollars, except per share and share amounts)
For The Second Half Ended For The Fiscal Year Ended
1/31/97 1/31/96(c) 1/31/97 1/31/96(c)
Net revenues $490.7 $293.9 $880.7 $500.1
Gross profit 319.3 193.4 568.2 329.4
Selling, general and
administrative expenses 184.8 114.8 329.1 208.3
Operating profit 134.5 78.6 239.1 121.1
Net income 98.4 $ 56.5 168.4 $ 82.9
Net income per share -
weighted average basis 1.61 $ 1.10 2.76 $1.68
Net income per share -
pro forma - $ 0.97 - $1.54
Weighted average number of
shares outstanding 61,309,033 51,324,691 61,101,840 49,213,183
Pro forma weighted average
number of shares outstanding -61,365,724 -60,225,598
(c) Restated to reflect change in the accounting principal.
--30--rc/ny*
CONTACT: Gucci Group N.V.
Domenico De Sole
Chief Executive Officer
Tel: 39.55.759.2420
or
INVESTOR CONTACT: Enza Dominijanni
Director of Investor Relations
Tel: 39.55.759.2205
or
Morgen-Walke Associates, Inc.
Christine DiSanto/Caroline Babbitt
Tel: 1.212.850.5600
or
Morgen-Walke Europe
Nancy Teitelbaum
Tel: 33.1.47.03.6810
or
Morgen-Walke Associates, Inc.
Terry Rooney/Stacy Berns
Tel: 1.212.850.5600
KEYWORD: NEW YORK
INDUSTRY KEYWORD: RETAIL APPAREL/TEXTILES EARNINGS REPEATS: New York
212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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