Luxury brands continue to shine
Despite the stock markets falling significantly this week and analysts predicting doom and gloom across retail markets, including high-end products, it appears that consumers of luxury goods are by no means running scared, as yet.
France’s PPR is the latest high-end company to report positive results this week following on from Aeffe, Coach and Richemont, which have all posted significant improvements despite many experts forecasting a downturn.
Far from taking a cautious stance, PPR described the fourth quarter at its Gucci brand as a “momentous year-end performance” while Bottega Veneta’s “stellar performance continues”, despite the current economic challenges.
Overall PPR posted revenues from continuing operations of €19.761 billion in 2007, up 16% on a reported basis and 7% on a comparable basis over 2006. Revenues generated outside France represented 59% of total sales.
Gucci Group achieved a 15% jump in comparable revenues in the full year and posted an increase of over 14% in the fourth quarter, while annual revenues rose 49% at Bottega Veneta.
Commenting on the results, Francois-Henri Pinault, chairman and Chief executive, said: "PPR's excellent figures speak for themselves: they illustrate the strength of the Group's strategic business model and its capacity to resist economic vagaries. Thanks to our complementary products and brands, the geographical breadth of our networks and our constant push to strengthen our positions in the markets that enjoy the highest growth potential, PPR boosts its performance consistently quarter after quarter. With solid fundamentals and disciplined management, we will deliver higher results for full year 2007. We are confident in the group's ability to further strengthen our performances in 2008."
