A Celebration of Jewelry and the Business Behind the Beauty
Leibish & Co
Monday, May 2, 2011
Luxury Demand Fueled Sales for PPR
Multi-brand retailer PPR SA said the performance of its Luxury Group led the way for the first quarter turning in what the company described as a “stellar performance” with revenue surging 26.2 percent to 1.13 billion Euros ($1.68 billion).
Brands in the Luxury Group include the Parisian luxury jeweler, Boucheron, which reported double-digit growth in sales for the period “spurred by a buoyant performance from high jewelry and jewelry,” PPR said. Other companies within this group include Gucci, Bottega Veneta and Yves Saint Laurent.
Overall, the Parisian global brand conglomerate—which also owns Puma, Fnac and Redcats—said first quarter sales were up 9.1 percent on a year-over-year basis to 3.71 billion euros ($5.52 billion), powered by the fast-paced growth of the company’s business in emerging countries, which represented 21 percent of its total revenues.
PPR, formerly Pinault-Printemps-Redoute, said it had revenue growth in all geographic areas with the exception of Japan, where the March 11 earthquake brought an end to the upward trend observed since the beginning of the year.
Sales for its Luxury and Sport & Lifestyle businesses climbed 20.6 percent, the company said.
“Strong sales growth was driven by an excellent showing from our Luxury and Sport & Lifestyle businesses, which altogether delivered double-digit growth in all geographic areas apart from Japan,” said François-Henri Pinault, PPR chairman and CEO. “In Japan, the professionalism and courage of our teams have seen the Group’s brands through testing times. These performances testify to our vigorous organic growth dynamic. I am therefore confident that in 2011 PPR will be able to maintain its revenue growth momentum and surpass its 2010 financial performance, building on the strength of its business model and the pertinence of its strategy.”
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I am a freelance writer and editor who covers the luxury jewelry and watch industry for several publications, including Forbes.com the Financial Times, Hong Kong-based JewelleryNetAsiaand the Italian jewelry magazine, VO+. In addition, I have my own blog covering the jewelry and watch industry, Jewelry News Network.