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| François-Henri Pinault |
Net earnings income for the Paris-based company totaled 965 million euros ($1.31 billion) versus 950 million euros ($1.29 billion) last year. Operating income rose 23.5 percent to 1.53 billion euros ($2.1 billion).
“The operating and financial performance of the Group as a whole and of each of its businesses was outstanding in 2010. Cost-control efforts launched during the height of the economic crisis and the sales offensive implemented successfully in 2010 to drive profitable revenue growth enabled the Group to take full advantage of the upturn,” said François-Henri Pinault, PPR chairman and CEO. “I am confident … PPR will continue to achieve robust revenue growth in 2011 and deliver a better financial performance than in 2010.”
The company—whose luxury brands include Boucheron, Gucci, Bottega Veneta, Yves Saint Laurent and Balenciaga—also announced a shakeup of its management structure. Under the plan, which becomes effective March 1, Pinault will head the company’s luxury division. He will replace Robert Polet, who led the division since 2004. The company also has a Sports & Lifestyle division, which includes the brands Puma, Fnac and Redcats.
Under the new structure, each luxury brands will retain its autonomy under the responsibility of its respective CEO and creative director. The Luxury Business group will report directly to Pinault. Alexis Babeau, who was previously COO of Gucci Group, has been appointed deputy CEO of the Luxury Business group.
Pinault, in a statement, said the new management structure was “conceived jointly” with Polet.
“I would like to give Robert the warmest thank for his commitment and dedication in leading Gucci Group to where it is now,” Pinault said. “His many qualities and achievements have earned him the respect of all in the world of Luxury. Today, our Luxury Business Group has blossomed into an ensemble of superb, creative and independent brands achieving outstanding operational and financial performances.”