PPR last week stated that lusty demand for Gucci shoes and bags raised the French luxury and retail groups’ revenues in the first quarter. Sales of leather goods at Gucci bounded more than 25 percent, propelling sales at the Italian company up 14.2 percent to 429.9 million euros.
Overall, PPR’s luxury division reported sales were up 10 percent to 711.5 million euros, or $933.8 million, the latest indication of a robust environment for Europe’s key luxury players. The gains at PPR’s luxury division helped offset mild increases at its retail arm, such as the Printemps department store chain and the Redcats catalogue business, which were stalled by weak consumer spending in France and elsewhere in Europe.
PPR said its sales in the three months through March 31 improved 2.2 percent to 4.11 billion euros, or $5.39 billion, from 4.02 billion euros, or $5.27 billion, a year ago, largely in line with analysts’ consensus expectations.
Though Pinault trumpeted the stellar leather goods sales at the Gucci brand, he reported lackluster sales of clothing – including at most of the division’s other labels, which also include Yves Saint Laurent, Stella McCartney, Alexander McQueen and Balenciaga. He called the flat ready-to-wear sales endemic to the industry, and said he hoped for a pickup later this year.
