PPR Group H1 underlined with rising sales of luxury goods

09 Sep '05

3 min read

The Luxury Goods division increased its contribution to the Group's results. Factors driving growth in the gross profit margin of the Luxury Goods division, which expanded by 1.7 points at constant exchange rates to 66.4 percent, included the success of the new Gucci and Bottega Veneta collections, the marked increase in the share of Leather Goods within the product mix and a positive sales mix effect between directly operated stores and wholesales.

Recurring operating income rose by 11.3 percent to €348.6 million. The recurring operating income margin grew by 0.3 points to 4.3 percent of total sales.

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European famous luxury goods retailer PPR is one of the very few groups of this size - net sales of over EUR 17 billion in 2004 - to combine Luxury Goods with Retail distribution. These two complementary activities rely in part on a common pool of know-how, expertise and talent in brand management, quality of customer service and the management of distribution networks. Yet the two sectors also operate according to different principles.

The Luxury Goods business, with its powerful and prestigious brands, makes PPR a global presence on fast-growing markets. In a sector where creativity is the key to success, Gucci Group is able to exploit the well-judged positioning of its brands and its geographical diversity to seize the most promising development opportunities.

PPR Group

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