Article: DE SOLE `DELIGHTED' -- EVEN THOUGH GUCCI NET DROPS 17.3%.(Gucci Group profits)(Statistical Data Included)

MILAN -- Gucci Group chief executive officer Domenico De Sole feels vindicated.

Profits fell at a double-digit pace in the fourth quarter and year, but De Sole viewed the results not only as better than expected but also as proof of the company's discipline and the wisdom of its acquisition record.

Gucci on Thursday reported net profit last year fell 17.3 percent, to $278.4 million or $2.74 a diluted share, as sales gained 1.2 percent to $2.28 billion. Fourth-quarter earnings dropped 12.3 percent to $83.3 million, or 82 cents, as sales rose 1.4 percent to $624.6 million. Dollar figures are converted from the euro at current exchange rates.

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