Gucci Ups the Ante with Two Hot Designer Hires

By Lauren Goldstein/London

Gucci creative director TOM FORD and Gucci Group CEO DOMENICO DE SOLE are continuing their game of one-upmanship in their competition with luxury-goods rival LVMH Moet Hennessy Louis Vuitton and its chief, Bernard Arnault. In their effort to diversify Gucci's fashion line and acquire designers with buzz, Ford and De Sole have already raided cutting-edge London designer Alexander McQueen from LVMH. Now the pair are set to announce that Chloe's STELLA MCCARTNEY (a media-garnering celebrity favorite and Paul's daughter) is launching her own label under Gucci; red-hot fashion star Nicolas Ghesquiere will also join the group. McCartney's contract at Chloe is believed to expire in June; Ghesquiere is bringing the legendary haute- couture house Balen- ciaga under the upstart Gucci Group umbrella. Not bad considering that just 18 months ago Gucci "Group" was composed of just Gucci. Since then, American Ford, 39, who designs the Gucci and Yves Saint Laurent lines, and De Sole, 57, have given a makeover to the company's image, moving it from fusty, fashion conservative and financially precarious to sexy, of the moment--and profitable.

--By Lauren Goldstein/London