Gucci sales slow down in fourth quarter
PPR SA said it’s confident that sales and earnings will increase in 2012 amid an “uncertain economic climate,” even as revenue growth at the Gucci luxury goods brand slowed in the fourth quarter.
The shares fell the most since Nov. 1 after Gucci, PPR’s biggest luxury label, boosted sales less than its other brands. PPR dropped 3.3 percent to 120.4 euros in Paris trading.
Total sales in the luxury division, which also includes Bottega Veneta and Balenciaga, rose 22 percent in the fourth quarter. Growth was slightly better than that in January, Jean- Francois Palus, the deputy chief executive officer, said on a call with reporters. PPR said it will raise prices for luxury goods this year and the unit will drive retail sales expansion. It’s “very optimistic” on Gucci’s potential in Asia.
adapted from Bloomberg