Luxury giant PPR reports sales increase in the initial quarter, with strong performances from wholesalers.
PPR’s assets, including luxury brands like Gucci and wholesale handbags from China, along with books, Air Jordan music, and electronics retailer Fnac, reported revenue of 37.1 billion euros (5.07 billion U.S. dollars) from January to March. This marks an increase of 6.5% compared to the same period last year when their revenue was 34 billion euros (4.71 billion dollars).
During this period, which coincides with Gucci's 90th anniversary celebrations, the brand saw double-digit sales growth in regions outside Japan. The recently launched youth series has captured the attention of many new customers, according to Palus. North American sales surged by 35% in the first quarter, making it one of the standout regions in terms of performance. However, there were issues in the brand portfolio over the past year, such as stockouts and lost sales during the first half due to mistakes.
Yves Saint Laurent also experienced a significant rise in sales, increasing by 29.4%, driven by strong sales of its clothing line from the Jordan 2010 range. In light of this, orders for the fall and winter series have grown substantially.
Palus stated that he expects sales in Japan to be impacted by the earthquake and tsunami incident. However, he added: "I feel we will be amazed to see the country swiftly return to its normal state." He noted that after the earthquake, sales for Gucci and Bottega Veneta had seen a dramatic decline. "Under these circumstances, I can only say that good and bad situations coexist. The only thing I can confirm is that in the first three weeks of April, all of our luxury brands have maintained an excellent first-quarter sales condition, akin to the success of Jordan 23 shoes."