Luxury goods conglomerate PPR reported excellent third quarter results in its luxury division, while its retail business continued to cause its concern. While the Gucci Group posted a sales increase of 15.3 percent to €1.04 billion and the Yves Saint Laurent brand reported a 26.3 percent rise in sales, sales in the retail division slipped 0.5 percent to €4.34 billion. The group blamed the disappointing sales on the bad warm weather and slow spending in France and Italy .
Total group sales rose 3.2 percent to €5.37 billion. “In luxury, the market is continuing to grow, though at a slightly lower pace,� chief financial officer Jean-Francois Palus said during a conference call this week. The luxury business grew in most geographic regions, although a weak yen dented sales in Japan . The US remained a “challenging� market, the group said.
In terms of products, Palus said the group would focus on upgrading the watch collections and their positioning in the market. Leather goods and ready to wear continued to grow at Gucci and Yves Saint Laurent, where leather goods were up a whopping 74.2 percent. Palus said Yves Saint Laurent and Sergio Rossi showed the most growth. Full year group sales rose 5.9 percent to €17.93 billion.
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