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4-Traders Homepage  >  Equities  >  Euronext Paris  >  Kering    KER   FR0000121485

KERING (KER)
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PPR Sales Rise On Strong Luxury Growth

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04/25/2012 | 06:29pm CEST

By Nadya Masidlover

Of

French luxury-to-retail company PPR SA (>> PPR) Wednesday said it expected another good year, after its first-quarter sales beat expectations, driven by strong demand for luxury goods while the company's sport and lifestyle division showed more modest growth.

The company's performance in the first quarter "reinforces our confidence in PPR's ability to deliver another year of brisk revenue growth, combined with gains in operating and financial performance, in 2012," said Chief Executive Francois-Henri Pinault, in a statement.

Sales for the first quarter rose 15% to EUR3.26 billion on a pro-forma basis, that strips out contributions from its Redcats catalogue business and Fnac retail unit in Italy, which are up for sale. The figure was above analyst expectations of EUR3.15 billion.

Revenue, which increased 7.9% on a like-for-like basis, excluding currency variations and acquisitions, was further boosted by Italian suit maker Brioni, which PPR bought in 2011.

The company's luxury division, home to its star Gucci brand as well as Bottega Veneta and Balenciaga, rose 18% on a like-for-like basis to EUR1.46 billion, with a 12% increase in Gucci sales.

In the fourth quarter of 2011, a slow-down in all-important Gucci division's growth to 12% on year in like-for-like terms, from 21% in the previous quarter, had already raised concerns among investors.

Recent sales updates from other luxury companies, including France-based LVMH Moet Hennessy Louis Vuitton SA (>> LVMH) and U.K.-based Burberry PLC (>> Burberry Group plc), have worries investor, with figures pointing to a slackening in the pace of the sector's growth since the beginning of the year.

Puma AG Rudolf Dassler Sport (>> Puma AG Rudolf Dassler Sport), the company's main sportswear brand, posted sales up 3% on a like-for-like basis from the same period of 2011.

The company said that Puma's "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."

Retail chain Fnac reported a 0.8% drop in like-for-like sales as the euro-zone crisis continues to take its toll on consumer spending.

PPR is in the process of shedding its retail assets in order to focus its business on luxury and sports-type brands. Along with Redcats, which the company has already excluded from its financial releases, PPR hopes to sell the home-electronics chain Fnac, which comprised about one third of the company's revenue last year.

Over the past six months, PPR shares have outpaced France's CAC-40, rising close to 8%, while the benchmark index has risen around 2%.

PPR shares closed at EUR119.7 Wednesday.

-By Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1754; [email protected]

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Stocks mentioned in the article : PPR, Puma AG Rudolf Dassler Sport, Burberry Group plc, LVMH
Stocks mentioned in the article
ChangeLast1st jan.
BURBERRY GROUP 1.20% 1735 Delayed Quote.-3.18%
KERING 0.47% 431 Real-time Quote.9.67%
LVMH MOËT HENNESSY VUITTON SE 0.74% 279.25 Real-time Quote.13.79%
PUMA AG RUDOLF DASSLER SPORT -2.06% 405 Delayed Quote.11.57%
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Financials (€)
Sales 2018 16 035 M
EBIT 2018 3 270 M
Net income 2018 2 250 M
Debt 2018 2 093 M
Yield 2018 1,61%
P/E ratio 2018 23,74
P/E ratio 2019 22,03
EV / Sales 2018 3,52x
EV / Sales 2019 3,22x
Capitalization 54 426 M
Chart KERING
Duration : Period :
Kering Technical Analysis Chart | KER | FR0000121485 | 4-Traders
Technical analysis trends KERING
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 445 €
Spread / Average Target 3,3%
EPS Revisions
Managers
NameTitle
François-Henri Pinault Chairman & Chief Executive Officer
Jean-Philippe Bailly Chief Operating Officer
Jean-Marc Duplaix Group Chief Financial Officer
Baudouin Prot Director
Patricia Barbizet-Dussart Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
KERING9.67%66 870
INDITEX - INDUSTRIA DE DISEÑO TEXTIL-15.68%93 778
FAST RETAILING CO LTD4.23%46 812
ROSS STORES-1.87%29 276
ZALANDO-1.53%13 235
PRADA S.P.A.36.40%12 527