Paris, April 25, 2012
First-quarter 2012 revenue
? Sharp rise in consolidated revenue up 15% on a reported
? Outstanding performance in Luxury Division: revenue up 29%
In the first quarter of 2012, PPR posted ?3.3 billion in
revenue from continuing operations, up
7.9% on a comparable basis(1) and 15.4% on a
reported basis versus first quarter 2011. This strong start
to the year was powered by the fast-paced growth of the
Group's businesses in emerging countries which now
represent around 37% of revenue for the Luxury and Sport &
Revenue for the Luxury Division surged 29.1% on a reported
basis, with double-digit growth in all geographic areas. The
Sport & Lifestyle Division also continued to advance,
14.6% increase in revenue on a reported basis. Overall, sales
for the Luxury and Sport &
Lifestyle businesses climbed 23.2% on a reported basis and
11.6% in comparable terms.
François-Henri Pinault, Chairman and Chief Executive Officer,
commented: "PPR delivered a highly satisfactory
performance overall in the first quarter of 2012. Our Luxury
brands once again reported strong growth in all geographic
areas, while our Sport & Lifestyle brands continued to move
ahead. I would also like to highlight Fnac's significant
market share gains. These performances bear witness to the
Group's momentum, its successful multi-brand strategy,
the remarkable geographic spread of its businesses and the
strength of its business model. This reinforces our
confidence in PPR's ability to deliver another year of brisk
combined with gains in operating and financial performance,
(in ? million)
Sport & Lifestyle Division
Sport & Lifestyle Division
Eliminations and other
PPR - Continuing operations
(1) Constant Group structure and exchange rates.
? Luxury Division
In the first quarter of 2012, the Luxury Division reported
stellar performances with revenue jumping 29% in reported
terms and 18% on a comparable basis.
Double-digit growth across all geographic regions was powered
by 20% sales growth in emerging countries, which now
represent nearly 40% of the Luxury Division's sales.
Fashion and Leather Goods sales advanced 18% in the first
three months of the year. As of end-March 2012, the store
network of the Luxury Division comprised 863 units.
Gucci had a good start to the year, with sales up 12% in
comparable terms and 16% on a reported basis.
Directly-operated stores once again improved their
contribution to revenue, advancing 13% in the quarter, and
now accounting for three-fourths of Gucci's total sales.
Online sales surged 30%, continuing to increase as a
proportion of total revenue.
All geographic areas reported growth, with Western Europe and
North America up 10% and
9%, respectively, demonstrating the brand's unrivalled
appeal in mature markets. Japan confirmed its recovery with a
16% jump in sales, while emerging markets continued to grow
at a consistent pace, particularly Greater China which was up
All product categories achieved major gains during the first
quarter of the year, including growth of over 20% in
Timepieces. Sales of men's ready-to-wear and of the
Children's collection also expanded significantly.
In March 2012, Gucci unveiled its new "Forever Now"
advertising campaign starring Charlotte Casiraghi as the
brand ambassador. It was very well received and attracted
significant media attention, as did the recently presented
Autumn/Winter 2012-2013 collections.
As of end-March 2012, the Gucci network comprised 390 stores,
including 149 in emerging markets.
Bottega Veneta delivered another excellent performance in the
first quarter of 2012, with revenue jumping 33% on a
comparable basis and 39% in reported terms.
The brand's outstanding performance spanned all
geographic areas: Western Europe (up 28%), North America (up
36%), Asia-Pacific (up 45%) and Japan (up 16%). All
distribution channels contributed to growth, fuelled by the
overwhelming success of the brand's iconic Leather Goods
articles and its Cruise and Spring/Summer collections. Online
sales more than doubled compared to the first quarter of
Bottega Veneta's fragrance line, launched in selected
markets in the middle of last year, continued to enjoy a
positive reception during the first three months of the year,
in both directly- owned stores and third-party
As of end-March 2012, Bottega Veneta operated a network of
Yves Saint Laurent
Yves Saint Laurent put in a bumper performance in
first-quarter 2012, with sales soaring 40% on a comparable
basis and 43% in reported terms, on the back of the
successful Autumn/Winter collections as well as the
well-received Cruise and women's Spring/Summer
collections. Business was buoyant across the board with all
regions and distribution channels reporting strong growth on
a comparable basis: Western Europe (up 34%), North America
(up 48%), Japan (up 53%) and Asia-Pacific (up 63%). In
addition, royalties rose by around 15% compared
to the first quarter of 2011, predominantly from fragrances
Growth was sustained across all product categories. Leather
Goods did particularly well, leaping on the strength of the
new Cabas Chyc as well as carry-over lines such as Muse and
Muse 2. Shoes were another stand-out category, with the
ongoing success of the Tribute, TribToo and Palais lines.
As of end-March 2012, Yves Saint Laurent had a network of 86
Other Luxury Brands
In the first quarter, PPR's Other Luxury Brands posted
comparable sales growth of 20% (71% in reported terms) with
all brands and regions contributing to the performance:
Western Europe (up 12%), North America (up 33%), Asia-Pacific
(up 30% of which China up 28%) and Japan (up 10%).
Momentum remained especially strong for Fashion and Leather
Goods, with growth coming in
at more than 30% for the quarter, driven by sparkling
performances at both Alexander McQueen and Stella McCartney,
together with another strong showing at Balenciaga. Brioni,
which was fully consolidated in January, also posted
double-digit growth. Boucheron showed further improvement,
driven by its retail business.
? Sport & Lifestyle Division
In the first quarter of the year the Sport & Lifestyle
Division posted 15% revenue growth in reported terms and 3%
on a comparable basis.
This reflected solid performances in emerging markets and in
the Accessories and Apparel categories, which offset
Puma's weaker performance in mature markets.
The integration of Volcom continued to progress in a highly
satisfactory manner. In first-quarter
2012, Volcom reported a good performance with sales holding
firm versus the same prior-year period, on top of a high
basis of comparison.
Puma sales for the first quarter of 2012 moved up 6% on a
reported basis and 3% in comparable terms.
Performance in mature markets was disappointing, with sales
in Western Europe down 4% and North America reporting 4%
growth, both regions being held back by sluggish sales in the
Footwear category. This trend was offset by brisk demand in
Apparel and other key categories, especially golf equipment,
clothing and shoes. In addition, Puma achieved solid
performances in emerging markets.
Puma's management is currently focusing on adjusting its
organisation as well as its Lifestyle
and Performance product offering to kick-start growth
momentum. This includes capitalising on the promising results
of the eagerly-awaited "Archive Bolt Lite" footwear
line by expanding its ultralight range. To celebrate the
"Year of Speed", Puma will also be launching a new
Performance collection of ultralight footwear inspired by
Usain Bolt which will encompass all sport categories.
In first-quarter 2012, Fnac saw sales retreat 0.8% on a
comparable basis (down 0.7% in reported terms) compared to
the same prior-year period, in tough market conditions.
In France, revenues were down just 2.1%, with business levels
supported by a 15% advance in
online sales and market share gains in technical and
editorial products. Despite the tough economic environment,
especially in Southern Europe, the international segment
moved forward under the impetus of new store openings and a
solid performance in technical products.
Brazil reported excellent sales with revenue up 9.1% on a
For all geographic areas combined, online sales leapt 18% and
represented 12% of Fnac's total
sales for the period.
Fnac is continuing to work on its various store formats as
well as on developing new product categories and online
activities in order to accelerate the return to sustainable
growth over the medium term.
Significant events since January 1, 2012
- On January 11, 2012, PPR announced that it had completed
the acquisition of the entire share capital of Brioni - one
of the world's most reputable men's fashion houses
- in accordance with the terms announced on November 8, 2011,
after having received clearance from the competition
- On January 13, 2012, Fnac announced an ?80 million
full-year cost-saving plan in an effort to combat the
worsening economic environment, and confirmed the
implementation of the Fnac 2015 strategic plan.
- On March 7, 2012, Yves Saint Laurent and PPR announced the
appointment of Hedi
Slimane as Creative Director of Yves Saint Laurent. He will
assume total creative responsibility for the brand image and
all its collections.
- On March 21, 2012, PPR announced the decision of its Board
of Directors to submit the
appointment of Jochen Zeitz as a director for a four-year
term to the approval of the Annual General Meeting to be held
on April 27, 2012. Until October, Jochen Zeitz will continue
in his positions as CEO of the Sport & Lifestyle Division,
Chief Sustainability Officer of PPR and Executive Committee
member. As from that date, the Sport & Lifestyle Division
will report directly to Jean-François Palus, PPR's Managing
- On March 23, 2012, Standard & Poor's Rating Services
announced that it had raised its
long-term rating on PPR to "BBB" from
"BBB-" with a stable outlook, given the
Group's solid operating performances.
- On April 13, 2012, PPR issued a ?500 million, 3.125%
fixed-rate bond maturing in seven
PPR will hold a conference call for analysts and investors at
6:00pm (Continental Europe);
Conference call dial-in
5:00pm (UK); 12:00pm (East Coast, USA), on Wednesday, April
France +33 (0)1 70 99 42 71
UK +44 (0)20 7784 1036
US +1 212 444 0895
Access code: 9864101
France +33 (0) 1 74 20 28 00
UK +44 (0) 20 7111 1244
US +1 347 366 9565
Replay access code: 9864101 (until May 16, 2012)
The slides (PDF) will be available ahead of the conference
call at www.ppr.com
The PPR Group empowers a coherent ensemble of Luxury and
Sport & Lifestyle premium brands,
specializing in apparel and accessories, to reach their full
growth potential. Distributed in more than 120 countries, PPR
generated revenues of ?12.2 billion in 2011 and had over
47,000 employees at year end. The PPR share is listed on
Euronext Paris (FR 0000121485, PRTP.PA, PPFP).
Find out more on Gucci, Bottega Veneta, Yves Saint Laurent,
Alexander McQueen, Balenciaga, Brioni, Stella McCartney,
Sergio Rossi, Boucheron, Girard-Perregaux, JeanRichard, Puma,
Volcom, Cobra, Electric, Tretorn and Fnac at www.ppr.com.
Press : Paul Michon +33 (0)1 45 64 63 48 firstname.lastname@example.org
Hélène Saint-Raymond +33 (0)1 45 64 61 20
Analysts/Investors: Alexandre de Brettes
+33 (0)1 45 64 61 49
+33 (0)1 45 64 63 28
Website : www.ppr.com
Appendix : First-quarter 2012 revenue
(en ? million) Q1 2012 Q1 2011 (1)
Comparable change (2)
Bottega Veneta Yves Saint Laurent Other brands
Sport & Lifestyle Division
PPR - Continuing activities
Other discontinued activities
PPR - Discontinued activities
(1) Figures have been restated of Redcats and Fnac
Italy (IFRS 5).
(2) Comparable scope and exchange rates.