VALENTINO FASHION GROUP : premier trimestre 2007 - le 11 mai 2007

In geographical terms Group sales continued to record organic growth on all markets, especially in the United States where turnover rose by 18% at constant exchange rates, as follows:

(millions of euro)	1st quarter 2007	1st quarter 2006	Final change %	Comparable[1] change %
Europe	464.0	420.4	+10.4	10
Americas	93.3	90.1	+3.6	13
Asia	53.8	53.4	+0.7	9
Other countries	10.9	10.6	+2.8	5
Total products and services	622.0	574.5	+8.3	11
Royalties	15.7	14.0	+12.1	12
Total	637.7	588.5	+8.4	11

[1] On the basis of constant exchange rates compared with 2006

EBIT

Group EBIT rose by 14.4%, reaching 117.8 million euro (18.5% of turnover), by virtue of the progress recorded by all the brands, as follows:

(millions of euro)	1st	1st	Change %
	quarter 2007	quarter 2006
Hugo Boss	98.6	87.2	+13.1
Valentino	11.1	10.0	+11.0
Marlboro Classics/other brands	10.3	7.8	+32.1
Other and elisions	(2.2)	(2.0)
Total	117.8	103.0	+14.4

Pre-tax result

Pre-tax result at 31 March 2007 was 113.9 million euro, up by 12.1% (2006: 101.6 million euro).

Net income

Consolidated net income, including minority interest, totalled 83.2 million euro, up by 17.0% (2006: 71.1 million euro).

Group net income

Net income attributable to the Parent Company's Shareholders totalled 48.6 million euro, up by 17.1% (2006: 41.5 million euro).

Net financial debt

Group net financial debt at 31 March 2007 was 344.7 million euro, compared to 310.1 million at 31 March 2006 and 340.9 million at 31 December 2006.

Outlook for the current year

The trend in the first few months of 2007, the size of the autumn/winter order book and the growth in direct retail enable a prediction for the current year of a rising trend in sales of between 8 and 10% at constant exchange rates; operating and pre-tax income are expected to improve at a more than proportional rate to turnover growth.

******

This press release is available on the following website: www.valentinofashiongroup.com

For further information:

Investor Relations

Tel. +39 02/62491442

e-mail: [email protected]

Income statement	January/March		January/March		Change	Ch. in %
(millions of euro)	2007		2006
Net sales	637,7	100,00%	588,5	100,00%	49,2	8,40%
Cost of good sold	-324,8	-50,90%	-309,4	-52,60%	-15,4	-5,00%
Gross margin	312,9	49,10%	279,1	47,40%	33,8	12,10%
Product research and development costs	-14,1	-2,20%	-13,6	-2,30%	-0,5	-3,70%
Advertising, marketing and promotion costs	-37,3	-5,90%	-35,9	-6,10%	-1,4	-3,90%
Selling and distribution costs	-100,9	-15,80%	-91,9	-15,60%	-9	-9,80%
General and administrative costs	-42,1	-6,60%	-35,1	-6,00%	-7	-19,90%
Operating income	118,5	18,60%	102,6	17,40%	15,9	15,50%
Other (costs)/revenues	-0,7	-0,10%	0,4	0,10%	-1,1	n.s.
EBIT	117,8	18,50%	103	17,50%	14,8	14,40%
Net financial income/(charges)	-3,9	-0,60%	-1,4	-0,20%	-2,5	-178,60%
Income before taxes	113,9	17,90%	101,6	17,30%	12,3	12,10%
Taxes	-30,7	-4,90%	-30,5	-5,20%	-0,2	-0,70%
Net income	83,2	13,00%	71,1	12,10%	12,1	17,00%
Minority interest	-34,6	-5,40%	-29,6	-5,00%	-5	-16,90%
Group net income	48,6	7,60%	41,5	7,10%	7,1	17,10%

Balance sheet	31.03.2007	31.03.2006	Change	31.12.2006
(millions of euro)
Net trade receivables	398	363,6	34,4	264,1
Other receivables	72,6	57,6	15	84,9
Inventories	351,7	300,1	51,6	391
Short-term non-financial liabilities	-376,3	-359,4	-16,9	-372,5
Net working capital	446	361,9	84,1	367,5
Assets due beyond 12 month	125,7	114,3	11,4	120,3
Equity investments	0,4	0,4	-	0,4
Net tangible fixed assets	280,5	259,2	21,3	285,9
Intangible fixed assets	95,9	87,4	8,5	96
Goodwill and trademarks	304,8	303,7	1,1	304,2
Medium/long-term assets	807,3	765	42,3	806,8
Medium/long-term non-financial liabilities	-117,3	-88,9	-28,4	-114,8
Deferred tax provision	-52,3	-44,9	-7,4	-51,2
Net invested capital	1.083,7	993,1	90,6	1.008,3
Short-term financial liabilities	186,3	182,3	4	174,2
Cash & cash equivalents and short-term financial
assets	-58,3	-76,2	17,9	-66,6
Medium/long-term financial liabilities	216,7	204,4	12,3	233,3
Medium/long-term financial assets	-	-0,4	0,4	-
Net financial debt	344,7	310,1	34,6	340,9
Minority interest	275	262,8	12,2	246,2
Group net equity	464	420,2	43,8	421,2
Financing of net invested capital	1.083,7	993,1	90,6	1.008,3