PARIS — Improved sales at Gucci and Puma helped lift PPR to better-than-expected second-quarter sales.
Sales in the three months through June 30 improved 4.5 percent to 4.97 billion euros, or $7.77 billion, from 4.47 billion euros, or $6.99 billion, in the year-ago period, headlined by 8.8 percent growth in luxury and 6.3 percent growth at Puma. Currency conversions were made at average exchange rates for the respective periods.
The numbers, released after the market closed here, slightly bested analysts’ expectations. PPR’s stock closed up 5.25 percent to 66.60 euros, or $103.71. The sales results also signaled health in a chaotic economy among Europe’s key luxury players after strong numbers released earlier this month by Hermès, Burberry and Compagnie Financière Richemont.
Overall luxury sales grew 16 percent before the impact of currency exchange rates, led by high double-digit growth in “booming” emerging markets, particularly Asia, outside of Japan. Luxury sales in China alone rocketed 83 percent, PPR said, while sales of luxury in Europe grew 14 percent and improved 10 percent in the U.S. Sales at the Gucci brand improved 3.8 percent to 504.7 million euros, or $789.01 million, reversing the negative trend of the first quarter when sales fell 3.3 percent. Before the impact of currency exchange rates, Gucci’s sales in the quarter grew 11 percent, PPR said.
Jean-François Palus, PPR deputy chief executive officer and chief financial officer, said on a conference call that Gucci sales “significantly accelerated” in the second quarter after tough business early this year. “The second quarter showed a real improvement in Europe and the U.S.,” said Palus. The most spectacular growth, however, was delivered by emerging markets, with sales in Asia, excluding Japan, improving 40 percent and sales in the Middle East growing 60 percent.
Palus said Gucci sales improved by “high-single digits” in the continental U.S., but were dampened by fewer Japanese tourists in Hawaii. He said fewer Japanese and American tourists in Europe affected sales on the Continent, despite more Russian visitors.
Palus said Gucci’s business in Japan remained “challenging.” Overall luxury sales in Japan “slightly declined” in the quarter, he said. Palus called the economic climate “turbulent” and said the deteriorating value of the dollar against the euro had a greater-than-expected impact on total sales.
Mature markets faced the “twin headwinds” of a tough economic climate and adverse currency exchange rates, but, he said, “emerging markets continue to benefit from a favorable dynamic.”
Palus said current trading was “very good” and “that [PPR] has the same momentum in luxury” so far in July.
Bottega Veneta continued its strong performance, reporting that sales increased 13.6 percent to 91.2 million euros, or $142.5 million, with sales in Asia, excluding Japan, growing 56 percent. Bottega sales growth slowed to single digits in Japan.
At Yves Saint Laurent, sales gained 25.4 percent to 57.1 million euros, or $89.3 million, bolstered by emerging markets. Sales at the so-called other brands — Balenciaga, Boucheron, Stella McCartney and Alexander McQueen — improved 23.9 percent to 107.9 million euros, or $168.7 million.
Puma sales grew 6.3 percent, fueled by double-digit growth in apparel and accessories.
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