PPR Group’s luxury division reports 29 percent growth with YSL reporting spectacular results
PPR Group, whose luxury division includes brands such as Gucci, Bottega Veneta and Boucheron reportsrevenue growth from continuing operations at 15 percent reaching a total of 3.3 billion euros, which was fuelled by the fast paced growth of the Group’s business in emerging countries which now represent around 37 per cent of revenue for the Luxury and Sport & Lifestyle divisions.
Revenue for the Luxury Division surged 29.1 percent, with double-digit growth in all geographic areas. The Sport & Lifestyle Division (Puma, Volcom and Fnac) also continued to advance, reporting a 14.6 per cent increase in revenue on a reported basis.
Sales were up by 18 per cent in the Luxury Division on a comparable basis, though the pace of growth slowed down from 22 per cent in the previous three months. Gucci’s sales were up 12 percent, with directly operated stores advancing 13 percent in the first quarter of 2012, while online sales grew by 30 per cent.
Western Europe and North America showed strong growth, but still Asia Pacific remains the highest growing region Bottega Veneta sales were up by 33 per cent overall, with the Asia-Pacific recording an increase of 45 per cent. Western Europe was up by 28 per cent, whilst North America was up by 36 per cent.
Yves Saint Laurent delivered the strongest area of growth for PPR with sales up by 40 per cent on the back of the successful Autumn/Winter collections. The Asia-Pacific region continued to thrive for the brand with sales up by 63 per cent and sales were turned around in Japan and up by 53 per cent.
“PPR delivered a highly satisfactory performance overall in the first quarter of 2012. Our Luxury brands once again reported strong growth in all geographic areas, while our Sport & Lifestyle brands continued to move ahead. I would also like to highlight Fnac’s significant market share gains. These performances bear witness to the Group’s momentum, its successful multi-brand strategy, the remarkable geographic spread of its business and the strength of its business model. This reinforces our confidence in PPR’s ability to deliver another year of brisk revenue growth, combined with gains in operating and financial performance, in 2012.” Francois-Henri Pinault, PPR Chairman and CEO said.
By 2020, PPR are aiming to reach revenues of 24 billion euro, 10 billion euros of which in Asia as the company continues to focus on the luxury goods and the sports & lifestyle brands in its varied portfolio.