Feb 18, 2010
PPR says emerging markets helped it beat outlook in 2009
Feb 18, 2010
PARIS, Feb 18, 2010 (AFP) - French luxury goods group PPR reported on Thursday 18 February a fall in 2009 net earnings but said its performance beat expectations thanks to cost-cutting, emerging markets and the stock market launch of its African unit CFAO.
The group was expected to indicate later in the day what its strategy will be regarding the fashion label of designer Alexander McQueen who hanged himself in London last week.
The company said net profit last year fell 0.8 percent to 712.4 million euros (964 million dollars), well above the 592 million euros foreseen by analysts polled by Dow Jones Newswires.
PPR cited the successful initial public offering in November of its African automobile and pharmaceutical distribution unit CFAO as well as a reduction of 3.7 percent in operating costs.
"In particular we are pleased with out Internet operations, where sales came to nearly 2.0 billion euros for the year and accounted for 12 percent of total revenues," the group said in a statement.
It also pointed to the growing influence of emerging market countries, which accounted for 33 percent of total luxury goods sales.
The Gucci Group division reported a 21 percent sales gain in Asia apart from Japan, which included a 46 percent increase in China that helped "offset a decline in mature markets."
PPR's net financial debt declined 21 percent last year to 4.4 billion euros.
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