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This article was originally published in The Rose Sheet

Executive Summary

Acquisition of Spanish fragrance and fashion house Balenciaga will yield new fragrance line developed under YSL Beaute in 2004, Gucci says. Luxury goods manufacturer has entered into agreement with Groupe Jacques Bogart, which acquired the label in 1986, to place fragrance manufacturing and distribution under YSL Beaute's control for respective periods of up to three and four years, firm says. Fragrances generated two-thirds of Balenciaga's $20 mil. net revenues in 2000. Balance was generated by ready-to-wear and accessories. Cristobal Balenciaga founded House of Balenciaga in 1920s, but haute couture business was closed in 1968. Balenciaga primarily was licensed fragrance business for scents such as Talisman, Balenciaga Pour Homme, Prelude and Michelle until 1995, when Nicolas Ghesquiere revitalized fashion label as creative director. Ghesquiere will remain with Gucci in same capacity

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