PPR Sees Sales Jump and Profits Soar

Luxury goods group Pinault Printemps Redoute (PPR) said today (Tuesday) that second quarter sales jumped 9.8 percent to 641 million euros ($788 million) while earnings before interest and taxes soared 143 percent to 65 million euros ($80 million) from the same period of last year.

Sales of luxury goods rose 9.8 percent, reflecting a strong rise at Gucci, up 16.4 percent on a comparable basis, across all product categories and on the major markets, the sustained growth of YSL Beaute, which jumped 9.7 percent, and even more impressive growth by Yves Saint Laurent which showed a 22.5 percent increase.

Strong growth was reported in all regions, with especially vigorous sales growth in Europe, up 13.8 percent, in Asia Pacific excluding Japan, up 30.5 percent, and in the United States, up 18 percent. In Japan, sales rose 6.5 percent.

The double-digit rise in sales across virtually all product categories also reflected a 23.9 percent growth in leather goods.

Leather goods sales increased by 18.7 percent for Gucci, 27.8 percent for Yves Saint Laurent and 88.1 percent for Bottega Veneta, and accounted for 36.5 percent of total luxury goods sales for the quarter.

The timepieces business developed at a steady pace, with a 21.2 percent increase in sales, notably within Gucci.

Serge Weinberg, Chairman of the Pinault-Printemps-Redoute Management Board, said: “This quarter, during which PPR took operational control of Gucci Group, was marked by a sharp upward trend in both sales and profitability.

“This contrasts with the previous quarter's results, which were notably affected by non-recurring items. This performance reflects the quality of our main brands and the significant potential for profitable growth of our Luxury Goods business within the 'New PPR'.”