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PARIS – Luxury lifted first-quarter sales at PPR, the French conglomerate that owns Gucci Group, as the firm’s less profitable retail operations continued to post more tepid growth.
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Sales in the three months through March advanced 5 percent to 4.45 billion euros, or $5.8 billion, led by a 10.7 percent gain in sales at the Gucci Group luxury division, PPR said on Thursday. Dollar figures are at the average exchange rate.
“All of the brands of Gucci Group achieved strong growth,” Francois-Henri Pinault, PPR chairman and chief executive officer, said in a statement. “Strong growth” in leather goods, as well as “successful” ready-to-wear and footwear collections elevated Gucci brand sales 10.2 percent to 530.5 million euros, or $695 million, PPR said.
Gucci sales were strong across all regions, excluding Japan, reflecting similar trends from key luxury players LVMH Moet Hennessy Louis Vuitton and Richemont. Bottega Veneta, quickly becoming a star for PPR, said sales gained 45 percent to 84.8 million euros, or $111 million, as it opened new stores and felt growth in all product categories.
Money-losing Yves Saint Laurent continued to show signs of improvement as “excellent” sales of the spring-summer collection and “sustained” growth in leather goods lifted sales 30.2 percent to 55.2 Million euros, or $72.3 million. The YSL Beaute’s sales gained 10.1 percent on the back of good performances from YSL-branded products and Stella McCartney fragrances, while the group’s so-called other brands – Balenciaga, Boucheron, Sergio Rossi, Alexander McQueen, Stella McCartney, and Bedat & Co. – logged 22.4 percent growth to 114 million euros, or $149 million.
PPR’s retail operations were less stellar, especially the Redcats mailorder division, where sales fell 1.9 percent to 1.05 billion euros, or $1.4 billion, dented by strong competition.