Gucci upbeat after third-quarter profit

Luxury goods maker Gucci was upbeat on the key fourth quarter this morning as it reported a 17 per cent rise in third-quarter…

Luxury goods maker Gucci was upbeat on the key fourth quarter this morning as it reported a 17 per cent rise in third-quarter operating income after shoppers snapped up its pricey leather handbags.

"Our fourth-quarter performance continues to be outstanding, and I believe that we will achieve excellent results for the remainder of the year," chief executive Mr Domenico de Sole said in a statement.

Third-quarter earnings before interest, tax and amortisation were €90.9 million ($112.1 million) against €77.7 million a year earlier.

Sales were rose 12.8 per cent, on a constant currency basis, to €695 million in the three months to the end of October.

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"The iconic Chain horse-bit handbag as well as the spectacular autumn ready-to-wear collection have been driving traffic into the Gucci stores and generating strong sales worldwide," said Mr De Sole, who will leave the firm along with top designer Tom Ford in March.

"The Yves Saint Laurent's fashion and accessories business continued to make losses during the quarter. However, our efforts to re-establish the brand at the high end of luxury are bearing fruit," he said.