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2007 Off to a Strong Start: PPR Revenues Up 5.6% in the First QuarterPARIS, April 25 /PRNewswire/ -- In the first quarter of 2007, PPR posted revenues of EUR 4.4 billion, up 5.6% at comparable structure and exchange rates on the first quarter of 2006. Revenues outside France were up 9.3% and accounted for 57% of the Group's total sales. Francois-Henri Pinault, Chairman and Chief Executive Officer of PPR, stated: "In the first quarter, the PPR group successfully pursued its growth and its international expansion. All of the brands of Gucci Group achieved strong growth, once again underscoring the robustness and complementarity of our portfolio of brands. Fnac and Conforama started the year on very positive notes, Redcats pursues the transformation of its business model, and CFAO's efficiency enabled it to post another outstanding quarterly performance. These achievements reinforce our confidence for the rest of the year."
(in EUR million) Change Change
Q1 2007 Q1 2006 Actual Comparable (1)
Fnac 1,067 1,016 + 5.1% + 5.2%
Redcats Group 1,049 1,070 - 1.9% - 5.1%
Conforama 802 756 + 6.0% + 2.6%
CFAO 594 547 + 8.5% + 17.6%
Gucci Group 937 846 + 10.7% + 15.9%
Inter-company sales and
other -2 - ns ns
PPR 4,447 4,235 + 5.0% + 5.6%
(1) On a comparable basis in terms of Group scope and exchange rates.
Fnac Fnac recorded a highly satisfactory start to the year, posting a 5.2% increase in sales on a comparable basis, driven notably by strong growth outside of France (+12%). Sales of Fnac France were up 3.8%, reflecting continuing growth in sales of technical products (+11%) and confirmation of the success of its out-of-town store format, with a second store opening in Bayonne in February. Eleven new Fnac stores will open in France and elsewhere by the end of 2007. Redcats Group Redcats Group recorded a 1.9% decline in revenues on a reported basis and a 5.1% decline on a comparable basis in a challenging environment. La Redoute posted strong performances in and outside France, as did The Sportsman's Guide and large-size brands in the US. Regarding other brands which are in the process of being repositioned, Redcats deliberately reduced its catalog circulation and cut back on promotional activities, resulting in lower revenues. Redcats Group pursued the strong growth of its Internet activities, with on-line sales accounting for 39% of mail order sales in the first quarter of 2007. Conforama Conforama achieved promising first quarter sales, up 6.0% on an actual basis and 2.6% on a comparable basis. Sales in France were up 3.5%, driven in particular by household electrical goods, satisfactory results in furniture and strong growth in decorative items (+14%). The company's international activities outside Italy posted strong growth at +7%. In Italy, the decline in sales at Emmezeta stores slowed down (-7.7%), while activity at Conforama stores under the new format was up 3.6%. CFAO CFAO posted an outstanding first quarter, up 17.6% on a comparable basis. This growth was mainly due to excellent performance in the Automotive division (+24.5%), driven in particular by sales in North Africa (+49%) and sub-Saharan Africa (+26%). Gucci Group Gucci Group's activity in the first quarter of 2007 again posted a sharp rise despite an unfavorable currency impact. This excellent sales performance was reflected in a 15.9% increase in revenues on a comparable basis over the strong base of Q1 2006. These results confirm the success of Gucci Group's multi-brand strategy. Gucci Group posted double digit growth in all regions, particularly in North America (+16%), China (+87%) and Japan (+10%). The Gucci brand recorded a satisfactory 10.2% increase in sales during the quarter, on top of the strong comparison base in Q1 2006. The brand's sales benefited from strong growth in leather goods, mainly in North America and the Asia-Pacific region excluding Japan, and from the success of its ready-to-wear and footwear collections. Bottega Veneta again recorded strong growth (+55.3%) in all product categories and geographical areas. The brand continued to expand its sales network and opened four new stores in the first quarter. Yves Saint Laurent sales rose sharply in the first quarter of 2007, up 35.5%, mainly reflecting the excellent response to the 2007 Spring-Summer collections and sustained growth in leather goods. All geographical areas benefited from this momentum, notably Asia-Pacific excluding Japan (+49%) and North America (+47%). YSL Beaute recorded very strong growth of 10,1% (+15% excluding licence disposals and terminations). Sales were driven by Yves Saint Laurent-branded products and Stella McCartney fragrances. Europe, the Asia-Pacific region and Japan were key contributors to this performance. Other brands: Balenciaga, Boucheron, Sergio Rossi, Bedat & Co, Stella McCartney and Alexander McQueen - again posted strong growth at +22.4%, reflecting the Group's creative and sales momentum.
CONFERENCE CALL
PPR will hold a conference call for analysts, investors and journalists:
at 3 pm (Continental Europe); 2 pm (UK); 9 am (East Coast time, USA), on
Thursday April 26, 2007.
EUROPE: +33-(0)1-70-99-42-86
Replay: +33-(0)1-71-23-02-48
UK: +44-(0)20-7365-1851
Replay: +44-(0)20-7806-1970
USA: +1-718-354-1152
Replay: +1-718-354-1112
Replay access code: 3758649 # (until May 10, 2007)
PODCAST of the conference call available at: www.ppr.com
PRESENTATION
The slides (PDF format) will be available before the
conference call at www.ppr.com
About PPR PPR is a global player in Retail and Luxury Goods, with approximately 78,000 employees in 75 countries. Through its Retail businesses Redcats Group, Fnac, Conforama and CFAO, and the Luxury brands of Gucci Group (Gucci, Bottega Veneta, Yves Saint Laurent, YSL Beaute, Balenciaga, Boucheron, Sergio Rossi, BEDAT & CO, Alexander McQueen and Stella McCartney), PPR generated sales of EUR 17.9 billion in 2006. PPR shares are listed on Euronext Paris (# 121485, PRTP.PA, PPFP). For more information: www.ppr.com Website: www.ppr.com Appendix 1 : Sales in Q1 2007
(in EUR million) Change Change
Q1 2007 Q1 2006 Actual Comparable (1)
Fnac 1,067.2 1,015.7 + 5.1% + 5.2%
Redcats Group 1,049.2 1,070.0 - 1.9% - 5.1%
Conforama 801.6 755.9 + 6.0% + 2.6%
CFAO 593.7 547.3 + 8.5% + 17.6%
Gucci Group 936.8 846.4 + 10.7% + 15.9%
Gucci 530.5 508.3 + 4.4% + 10.2%
Bottega Veneta 84.8 58.5 + 45.0% + 55.3%
Yves Saint Laurent 55.2 42.4 + 30.2% + 35.5%
YSL Beaute 152.3 141.8 + 7.4% + 10.1%
Other brands 114.0 95.4 + 19.5% + 22.4%
Inter-company sales
and other -1.5 -0.4 ns ns
PPR - Continued activities 4,447.0 4,234.9 + 5.0% + 5.6%
Discontinued activities (2) 0.7 198.3
(1) On a comparable basis in terms of Group scope and exchange rates.
(2) Mainly France Printemps for 182 M in 2006.
Appendix 2: Sales by region
Fnac
(in EUR million) Change Change
Q1 2007 Q1 2006 Actual Comparable (1)
France 775.9 754.4 + 2.9% + 2.8%
Spain, Portugal, Belgium 205.9 186.1 + 10.6% + 10.6%
Brazil, Switzerland, Italy 85.4 75.2 + 13.7% + 16.6%
International 291.3 261.3 + 11.5% + 12.3%
TOTAL 1,067.2 1,015.7 + 5.1% + 5.2%
Redcats Group
(in EUR million) Change Change
Q1 2007 Q1 2006 Actual Comparable (1)
France 481.5 509.8 - 5.6% - 5.6%
United Kingdom 106.0 118.2 - 10.4% - 12.4%
Scandinavia 89.6 90.0 - 0.4% - 1.0%
United States 288.9 272.7 + 5.9% - 5.3%
Other countries 83.2 79.3 + 4.9% + 5.9%
International 567.7 560.2 + 1.3% - 4.6%
TOTAL 1,049.2 1,070.0 - 1.9% - 5.1%
Conforama
(in EUR million) Change Change
Q1 2007 Q1 2006 Actual Comparable (1)
France 573.8 526.5 + 9.0% + 3.5%
Italy 97.4 105.2 - 7.5% - 7.5%
Switzerland 66.8 61.4 + 8.8% + 12.8%
Other countries 63.6 62.8 + 1.3% + 1.5%
International 227.8 229.4 - 0.7% + 0.3%
TOTAL 801.6 755.9 + 6.0% + 2.6%
(1) On a comparable basis in terms of Group scope and exchange rates.
Appendix 3: Sales- Gucci Group
Gucci Group
Breakdown by region
(in EUR million)
Q1 2007 Q1 2006 Change Change
Actual Comparable (1)
Europe 408.6 347.7 + 17.5% + 17.5%
North America 171.9 158.2 + 8.7% + 16.1%
Japan 140.5 146.7 - 4.3% + 9.5%
Asia-Pacific excl. Japan 170.1 154.9 + 9.8% + 16.1%
Other countries 13.3 12.7 + 4.7% + 10.3%
Royalties and other 32.4 26.2 + 23.7% + 26.4%
TOTAL 936.8 846.4 + 10.7% + 15.9%
Gucci Brand
Breakdown by product category
(in EUR million)
Q1 2007 Q1 2006 Change Change
Actual Comparable (1)
Leather Goods 291.6 294.3 - 0.9% + 5.3%
Shoes 84.1 70.2 + 19.8% + 24.4%
Ready-to-wear 74.6 62.6 + 19.1% + 24.3%
Royalties and other products 80.2 81.2 - 1.3% + 4.4%
TOTAL 530.5 508.3 + 4.4% + 10.2%
(1) On a comparable basis in terms of Group scope and exchange rates.
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