Leather goods drive PPR profits
The parent group to Gucci, Pinault-Printemps-Redoute (PPR), has posted strong results for the first quarter 2004. Group sales rose 5.5% on a comparable basis to €5.8 billion while revenues were particularly strong for the company’s luxury goods division (including Gucci and Yves Saint Laurent) rising 11.5% to €741.7 million. Sales for the Gucci brand rose 5.4% on a reported basis to €466.1 million while retail sales were up 15.5% on a constant exchange rate basis, driven by excellent growth in Europe (+13.5%), the US, (+25.2%), Japan (+8.5%) and Asia excluding Japan (+25%).
Retail sales of footwear and leather goods were particularly strong, increasing 21.2% and 13.2% respectively on a constant exchange rate basis. The Yves Saint Laurent brand also generated exceptional growth, with retail sales soaring a massive 44.9% and overall sales climbing 2.4% on a reported basis to €42.7 million. Leather goods sales, driven by the success of the Saint Tropez handbag and Mala Mala line, went up 34.7% while footwear revenues rose 20%.
The announcement coincided with the surprise appointment of Robert Polet as chief executive of Gucci Group, replacing Domenico De Sole in the role. A surprise choice, Polet is former president of Unilever’s ice cream business, but is seen as having strong brand management credentials, having presided over the success of Unilever brands such as Magnum, Cornetto and Findus frozen food.
