Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

KERING (KER)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

PPR Sales Rise On Strong Luxury Growth, Puma Disappoints

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/25/2012 | 08:59pm CEST

--PPR sales rise to EUR3.26 billion in the first quarter, lifted by strong growth in luxury

--Gucci on-year growth in the first three months of 2012 remained stable from the fourth quarter of 2011

--PPR says it has no plans to sell its sports brand Puma

(Adds company comments)

 
   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.

Chief Executive Francois-Henri Pinault reiterated his previous guidance saying performance in the first quarter reinforced "confidence in PPR's ability to deliver another year of brisk revenue growth, combined with gains in operating and financial performance, in 2012."

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.

Business in the company's luxury division, home to its star Gucci brand as well as Bottega Veneta and Balenciaga, showed solid growth, up 18% on a like-for-like basis, as Gucci sales remained strong, up 12%.

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's LVMH Moet Hennessy Louis Vuitton SA (MC.FR, LVMUY) and the U.K.'s Burberry PLC (BRBY.LN, BURBY), have worried investors, with figures pointing to a slackening in the pace of the sector's growth since the beginning of the year.

The company's sport and lifestyle division showed weaker growth with sales increasing 2.8%, hurt by a weaker performance from Puma AG Rudolf Dassler Sport (>> Puma AG Rudolf Dassler Sport), the company's main sportswear brand, which posted a 3% rise in sales.

Despite the brand's "disappointing performance," Chief Financial Officer Jean-Marc Duplaix described recent reports PPR might sell Puma as "ludicrous".

"We do not have any intention whatsoever to divest from Puma," he said.

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 first quarter, Fnac reported a 0.8% drop in like-for-like sales as the euro-zone crisis continued to take its toll on consumer spending.

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]

Order free Annual Report for Puma SE

Visit http://djnweurope.ar.wilink.com/?ticker=DE0006969603 or call +44 (0)208 391 6028

Stocks mentioned in the article : PPR, Puma AG Rudolf Dassler Sport
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on KERING
06:03p KERING : Yves Saint Laurent’s Legacy lives on with new Museum in Marrakech
05:57p KERING : Mystical marrakech
10/19 KERING : New Yves Saint Laurent museum opens in Marrakech
10/18DJPUMA RUDOLF DASSLER SPORT : Raises 2017 Guidance on Strong 3Q Sales and Profitab..
10/14 COACH : How Adam Pritzker Is Building an American Fashion Conglomerate of Brands..
10/12DJCOACH : Adopts 'Tapestry' as Name To Broaden Brand -- WSJ
10/11 KERING : Winners of the 2017 kering award for sustainable fashion
10/11 KERING : Over 36 Major Brands Pledge to Achieve Sustainable Cotton by 2025
10/10 KERING : 2017 Kering Talk featuring Marco Bizzarri as guest of honour at London ..
10/10 European shares falter, LVMH helps luxury sector shine
More news
News from SeekingAlpha
10/18 Puma a star performer in sporting goods sector
10/10 European luxury stocks stoked by LVMH results
09/11 TIFFANY : Reassessing The Bullish Thesis
09/06 Fashion giants ban zero-sized models
08/24 Conclusions And Final Thoughts On 'The Cult Of The Luxury Brand'
Financials (€)
Sales 2017 14 878 M
EBIT 2017 2 622 M
Net income 2017 1 766 M
Debt 2017 3 681 M
Yield 2017 1,57%
P/E ratio 2017 25,46
P/E ratio 2018 22,20
EV / Sales 2017 3,28x
EV / Sales 2018 3,00x
Capitalization 45 183 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 27
Average target price 349 €
Spread / Average Target -2,5%
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$)
KERING67.82%53 323
WESFARMERS LTD1.45%38 076
AEON CO LTD4.74%13 473
EL PUERTO DE LIVERPOOL SAB DE CV-5.48%10 268
RYOHIN KEIKAKU CO LTD41.98%8 084
LOTTE SHOPPING CO LTD--.--%6 854