In contrast to its main rival, LVMH, (see leatherbiz story, 2002, an excellent year for LVMH 13.03.03) the luxury goods retailer, Pinaut-Printemps-Redoute, has posted disappointing 2002 full-year earnings. For the period ended December 31, 2002, the group’s operating income fell 7.7% to Eur1.8 billion ($1.95 billion) with a 5.6% decline being seen in the first half and an 8.9% rise in the second. PPR posted a 1.5% decline in sales to Eur27.4 billion ($29.8 billion) and attribute the downturn to a slowdown in its US business.

Highlights for 2002 included the opening of a further 83 stores in France and abroad, including 25 in the retail division and 58 in the luxury goods division. The group’s 2002 launch of innovative concepts, including Fnac Digitale, Histoires de chambers, the VertBaudet catalogue of children’s home furnishings and clothing. PPR also demonstrated commercial strength with the success of its sportswear divisions, Citadium, Made in Sport and Printemps de Luxe.

Serge Weinberg, chairman of the management board and CEO said: “The most important development of 2002 was the launch of a major strategy aimed at transforming PPR into a retail and luxury goods distribution group.

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