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.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye