Gucci Group announced on Tuesday it enjoyed a double-digit growth in retail sales in Japan, the United States and Europe in August and reiterated it expected a strong Autumn season. Confirming a report in French daily Les Echos, Gucci also said sales in Asia, excluding Japan, grew last month but not at a double-digit rate.

"We had difficult trading during the Iraq war and because of SARS, but an improvement started in May and June. The trend is for strong development," said a spokesman for Gucci, the third biggest luxury goods group after number one France's LVMH and Swiss Richemont. Gucci shares gained on the news and by 1119 GMT were 1.11 percent stronger at 91.45 euros after earlier touching an intraday high of 91.60 euros. Its shares are listed on the Amsterdam and New York GUC.N stock exchanges.

French retailer Pinault Printemps Redoute owns a majority stake in Gucci. Shares in PPR, which will report first-half results on Thursday, were up 3.4 percent at 82.10 euros. "It is the statements by (Gucci CEO) de Sole, the rise of the dollar and the improvement in the environment for the luxury industry that is boosting PPR," said one Paris-based trader.

PPR has the right to increase its stake in Gucci to 70 percent until 2004 and has said it will bid for the remaining shares at $101.50 per share in 2004. The French firm currently has about 67 percent of Gucci. Hit by the strong euro and the SARS virus in the first quarter, Gucci Group, whose fashion brands include Yves Saint Laurent and Alexander McQueen, made a 1.2 million euros profit compared with 35.5 million euros a year ago.