BancBoston Robertson Stephens Reiterates Buy Rating on GUC.

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 15, 1999--

BancBoston Robertson Stephens managing director and senior specialty retailing analyst Janet Joseph Kloppenburg, a 1999 Wall Street Journal All-Star Analyst, today reiterated her Buy rating on Gucci (NYSE:GUC).

Headquartered in Florence, Italy, the company is one of the world's leading designers, producers and distributors of high-quality personal-luxury accessories and apparel and is one of the best-recognized and most-prestigious international-luxury brands.

"We are reiterating our Buy rating on Gucci, following the company's announcement of better-than-expected second-quarter results," said Kloppenburg. "The company reported earnings-per-share of $0.77, versus our estimate of $0.76 and versus $0.68 during the same period last year. Total sales for the period increased 10.1 percent to $260.9 million, versus $236.9 million last year."

"In our view, the strength in the quarter was driven by increased sales in ready-to-wear collections and in shoes," said Kloppenburg. "In addition, sales across all regions in the U.S., Japan and the rest of Asia and Europe were very strong and accelerated in July and then again in August."

"Going forward, we believe that strong sales trends, relatively easy comparisons, easier currency translations along with the possibility of acquisitions should enable the company to at least achieve our current, above consensus, fiscal 1999 and fiscal 2000 estimates of $3.50 and $4.07, respectively," said Kloppenburg.

"With the stock trading at 20.9 times our fiscal 2000 earnings-per-share estimate, we believe this is a compelling buying opportunity to own a dominant global brand."

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