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Gucci reports third-quarter net income drop, revenue increase

AP - Milan

Gucci Group NV has reported that its revenues rose to Euro 644.8 million (US$ 661.8 million) in this year’s third quarter, up 3.2 per cent from the same period last year. Net income at the world’s third largest luxury goods company was registered at Euro 52.9 million (US$ 54.3 million) during the three months ending October 31, down 14.4 per cent from the Euro 61.9 million (US$ 63.5 million) tallied in the third quarter last year.

The figures were in line with Gucci’s warning that it would not reach its earlier full-year targets. Mr Domenico De Sole, Gucci’s president and chief executive officer said in a statement that the fashion company had "performed admirably" in a "testing and volatile" third quarter. Some analysts suspect that Gucci’s slowing sales were a consequence of a fall and winter collection that failed to convince customers. However, Yves Saint Laurent saw its sales jump to Euro 37.9 million (US$ 38.9 million) with a 52.3 per cent increase from last year.