DESIGNER clothing and luxury goods brand Gucci last night reported significant sales growth.

The Italian fashion house, home to British designers Alexander McQueen and Stella McCartney said retail sales had "surged" since the beginning of August, boosting hopes of a recovery in the luxury goods sector, following a downturn.

The group, which also owns the Yves Saint Laurent brand, saw sales - taken on a constant currency basis - surge 20 per cent in the US, 14 per cent in Japan, 16 per cent in Hong Kong and China, and ten per cent in Europe in the second quarter of its financial year.

Chief executive Domenico De Sole said the group was expecting outstanding results later in the year, with exceptional levels of re-orders for autumn and winter lines, as well as positive reactions to next year's spring and summer collections.

The bullish outlook follows upbeat statements from rival luxury goods groups Moet, Hennessy, Louis Vuitton and Burberry on Tuesday, signalling better times ahead for the sector which has been hit by a downturn in tourism and general consumer confidence since late 2001.