French luxury goods group PPR has recorded revenues of €17,931 for 2006, a 5.9% increase compared with €16,938 in 2005. Revenues from outside France rose 8.6% compared with 2005 results, accounting for 55% of the company's total sales.

Operating income totalled €1,275 million, up nearly 20% over 2005. This strong increase reflected the performance of the Luxury Goods division, which now accounts for almost 43% of operating income, having accounted for just 35% in 2005.

Income from luxury goods increased 44% to €565 million, driven primarily by the Gucci Group which saw operating margins rise sharply to over 29%. Operating margins at Bottega Veneta also increased to 20.5% and YSL Beauté improved 2.3 points to 5.2%.

The company has also announced that it has received and accepted an offer from Accor for the acquisition of its Kadeos division for €210 million. The transaction should be completed in mid-March.