Corporate expenses increased to US$ 7.6 million from US$ 3.4 million Gucci last year primarily as a result of the reclassification of certain expenses from the operating divisions to corporate due to the reorganization of the Group carried out in 2000. Management believes full year corporate expenses will approximate last year’s levels.
Goodwill and Trademark Amortization
Goodwill and trademark amortization was US$ 28.0 million (US$ 22.7 million net of tax), compared to US$ 17.8 million (US$ 12.7 million net of tax) last year. Including the newly acquired companies and recently announced joint ventures, management expects full year 2001 goodwill and trademark amortization to be approximately US$ 115 million, or approximately US$ 95 million net of tax.
Other Items
Financial Income
The Group’s net financial income for the quarter, US$ 24.5 million, reflected a 5.0% annualized yield on the Group’s average net cash position in the period. Due to the recent 250 basis point reduction of short term US interest rates, management has reduced its estimate of full year net financial income to approximately US$ 80 million to US$ 85 million from the previous estimate of US$ 115 million.
Net income per share
Fully diluted net income per share amounted to US$ 0.55 compared to US$ 0.46 last year.
Outlook
 ,Gucci Shoes ; Management estimates that Group revenues will be approximately US$ 2.45 billion and that Group operating profit before goodwill and trademark amortization will be approximately US$ 410 million in 2001. These figures compare to the previous 2001 forecast of US$ 2.6 billion in revenues and US$ 440 million in operating profit before goodwill and trademark amortization.
Management also believes the Group will achieve fully diluted net income per share of at least US$ 3.00 in 2001, compared to the previous estimate of US$ 3.40. This change is due principally to the reduction of net interest income linked to the Gucci Handbags aforementioned fall in short term US rates. Excluding goodwill and trademark amortization and restructuring charges, management estimates the Group will achieve fully diluted net income per share of US$ 4.00 this year compared to the previous estimate of US$ 4.35.
Gucci Group N.V. is one of the world’s leading multi-brand luxury goods companies. Through the Gucci, Yves Saint Laurent, Sergio Rossi, Boucheron, Roger & Gallet, Bottega Veneta, Bedat & Co., Gucci Bags and Stella McCartney brands, the Group designs, produces and distributes high-quality personal luxury goods, including ready-to-wear, handbags, luggage, small leather goods, shoes, timepieces, jewelry, ties and scarves, eyewear, perfume, cosmetics and skincare products. The Group 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 Euronext Amsterdam Stock Exchange.
Under the safe harbor provisions to the U.S. Private Securities Litigation Reform Act of 1995, the Company cautions investors that any forward-looking statements of projections made by the Company, including those made in this document, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect the Company’s operations are discussed in the Company’s Annual Report on Form 20-F for 1999, as amended, filed with the U.S. Securities and Exchange Commission.
