PPR reports an “outstanding performance”
There is still no sign of a slowdown in the luxury segment as France’s PPR, which owns brands such as the Gucci Group and Bottega Veneta, posted what it termed as an “outstanding performance” in 2007, more than doubling its net income for the year.
Revenues from continuing operations improved 16% on a reported basis and 7% on a comparable basis to reach €19.8 billion, boosted by the first-time consolidation of German sports brand Puma which the company acquired last year.
Recurring operating income also improved significantly (+33%) to reach €1,696 million, driven by a 29% increase at its Gucci Group brands, which included a massive 69% increase at Bottega Veneta; while net income from continuing operations reached record levels, more than doubling the 2006 figures (+51%) to reach €1,058 million.
Commenting on the results, François-Henri Pinault, chairman and chief executive Officer, said: “PPR once again achieved outstanding operational and financial performances in 2007… These results reflect the strength of our brands and retail concepts, active in the fastest-growing consumer and luxury goods segments in over 90 countries. Our success is also due to the ongoing implementation of our strategy, which gives the Group a remarkably dynamic and balanced profile, a key competitive edge in today’s tougher economic environment. PPR is confident in delivering another year of growth and improved financial performances in 2008, while pursuing its expansion in high-growth markets.”
