Business news : Kering (ex-PPR), Sports and lifestyle division continues to suffer from the European economic situation

Like most players in the luxury industry, Kering (ex-PPR) found in the figures of its activity in the first quarter of 2013 the brand of the economic slowdown in Western Europe and the reduction of the speed of growth in China. The effect is even more pronounced as the basis of comparison is rather unfavorable. Thus luxury chaired by François-Henri Pinault pole was recorded during the first three months of 2012 an increase of 18% of its turnover. This rate dropped to 4.5% this year (6.4% at constant scope and exchange rates).  

Kering also suffers from persistent poor performance of its sports and lifestyle division, which shows a fall in sales of 4.9% (- 2.5% on a comparable basis). In the end, the group, which is now separate from the Fnac and waits for the next transfer of La Redoute, saw its total sales of 2.365 billion euros, signing a growth of only 1% and 3% at constant currency. 

In luxury, like the Gucci sales, North America continue to take activity (9%) comparable. This is also the case of China, but there, the double-digit growth has been reduced to its simplest expression: 10% average for all luxury brands pole. Sign of the times, the statement released yesterday shows for Gucci sales "mixed" in the Asia-Pacific region, and no number to support "a significant increase" in China. Jean-Marc Dupleix, CFO, "remains absolutely confident in the underlying trends" that carry the group, but admits to "remain vigilant" in terms of the global economy. He does not see elements that allow to expect a rebound to regain growth above 10% in China. 2011 is long gone, when, in the first quarter, Gucci had recorded a dramatic 52% + in the country. 

According to information provided to Reuters, the former PPR also suffer in Europe, in addition to the crisis, a slowdown in tourist flows ... In the detailed figures, the growth of Gucci, the flagship brand of the group was divided three, falling to 4%, while analysts expected 6%, after +8.2% in the fourth quarter of 2012 and a comparison of 12% a year earlier. 

Sports and lifestyle division continues to suffer from the European economic situation. The new "nugget" Volcom, combined with other small labels, is - 5.7% and Puma (- 2.3%) expects its new CEO, Björn Gulden. In an uncertain environment, mainly in Europe, PPR said remain attentive to controlling costs and maintaining gross margins.

Source Original french langueage by  Philippe Bertrand , lesechos.fr

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