European luxury groups continue to prosper
Just as the expected fall in consumer spending has not yet hit car sales in the USA, European luxury brands are continuing to enjoy improved sales and demand for their products.
German high-end fashion, footwear and accessories group Hugo Boss and French luxury fashion goods company PPR have both reported continued growth in sales for the first nine months with leathergoods and footwear performing well.
Hugo Boss reported a 12% currency-adjusted rise in sales for the first nine months of 2007, boosted by strong growth at womenswear, footwear and leathergoods divisions. Overall currency-adjusted sales improved 12% (9% in euro terms) to reach €1,328 million, up from €1,216 million in the comparable prior-year period.
Having recorded an impressive 28% increase in sales in fiscal 2006, the company’s shoe and leather accessories collections recorded further growth in the first nine months of 2007 with sales increasing to €147 million, up 17% from €126 million in the first nine months of 2006.
Meanwhile, PPR, whose brands include Gucci and Bottega Veneta, posted revenues of €14.4 billion, up 15% on an actual basis and up 6% on a comparable basis for the first nine months. In the third quarter the company reported revenues of €5.2 billion, up 21.9% on an actual basis and 6.8% on a comparable basis, while Bottega Veneta alone posted 48% growth.
