Analysts have suggested that drops in production of leathergoods could be the main reason why French luxury goods group PPR has seen a fall in sales in recent weeks. The drop has led to a fall in the company's share price on the Paris stock exchange.

MF Global analyst John Guy has said lower production of leather handbags and shoes for two of the group's main brands, Gucci and Yves Saint Laurent, had led to supply constraints on the retail side and would weigh heavily on first-half profit levels.

He said: "Gucci is working around the clock with weekend deliveries to restock stores." He was confident this level of effort would help results improve.

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