PARIS — Pinault-Printemps-Redoute will continue to streamline its profile by divesting its business-to-business division and concentrating on its higher-margin luxury and retail activities.
Serge Weinberg, chairman of the diversified retailer, which holds a 55.2 percent stake in Gucci Group, said in a conference call on Thursday that PPR has begun "redeploying" the group to make it "clearer and easier to understand."
PPR’s far-flung holdings span from luxury and retail to electronic components and wood.
Weinberg’s remarks came as PPR reported a 1.5 percent decline in 2002 sales to $28.74 billion, in line with analysts’ expectations. Dollar figures are converted from the euro at current exchange rates.
Weinberg said PPR had seen a "very marked improvement in business, notably in retail" in the fourth quarter, when overall sales rose 1.7 percent on a comparable basis. Sales had declined in the three previous quarters.
Excluding currency fluctuations, PPR said sales fell 0.5 percent in 2002.
Sales at the retail division, including the Printemps, Fnac and Conforma stores, increased 0.9 percent to $4.04 billion for the year, bolstered by a 3.5 percent increase in the fourth quarter.
Sales at Gucci Group increased 0.8 percent on a comparable basis to $2.66 billion, reflecting numbers already reported by Gucci.
The group’s weakest performer was the B2B division, which reported a 4.2 percent decline in sales to $12.6 billion. In recent months, PPR has divested several B2B holdings, including its Finaref and Facet consumer credit divisions and its Guilbert office supplies supplier.
"The reconfiguration process will be completed by the end of 2004," said Weinberg. "When it is complete, we willhave one type of client, which will strengthen the group."
Weinberg said more details on the strategy would be provided when PPR reports profits on March 5. French firms traditionally report sales and earnings separately.
Meanwhile, Weinberg said PPR would continue to incrementally bolster its majority stake in Gucci. PPR has pledged to buy all of the shares of Gucci it doesn’t own in 2004 for $101.5 a share, but, according to that agreement, PPR can buy up to 70 percent in Gucci before the end of the current year.In recent months, as reported, PPR has added more than 2 percent to its stake in Gucci by buying shares on the open market. Purchases made on Wednesday lifted its stake to 55.2 percent of the luxury house.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty