PARIS, July 26 /PRNewswire-FirstCall/ -- PPR posted revenues of EUR 9.2 billion in the 1st half of 2007, up 11.4% on an actual basis and up 5.6% on a comparable basis in terms of Group scope and exchange rates, versus the 1st half of 2006. These results include Puma's revenues, which were fully consolidated from 1 April 2007.
In the 2nd quarter of 2007, the Group recorded revenues of EUR 4.8 billion, up 18.1% on an actual basis and 5.6% on a comparable basis versus the 2nd quarter of 2006. Revenues outside France accounted for 61% of the Group's total sales, versus 57% in the 2nd quarter of 2006.
Excluding Puma, revenues on comparable basis were up 5.7% in the 1st half and 5.9% in the 2nd quarter of 2007.
Francois-Henri Pinault, Chairman and CEO of PPR, stated:
"PPR has once again demonstrated its ability to deliver highly sustained growth in its businesses. Further to the successful outcome of our recent voluntary takeover offer, Puma has broadened our portfolio of international brands with high growth potential and will strengthen our global presence. The first half of 2007 also saw historical growth at CFAO, a healthy recovery at Conforama, strong results at Fnac, resilience at Redcats, as well as the strength and efficiency of Gucci Group's multi-brand strategy."
(in EUR million) H1 2007 Change Change Q2 2007 Change Change
Actual Comparable Actual Comparable
(1) (1)
Fnac 2,065 + 5.7% + 5.8% 998 + 6.3% + 6.3%
Redcats Group 2,109 - 1.7% - 4.6% 1,060 - 1.4% - 4.2%
Conforama 1,523 + 4.4% + 2.5% 721 + 2.7% + 2.5%
CFAO 1,231 + 10.5% + 19.5% 637 + 12.5% + 21.3%
Puma 543 + 3.1% 543 + 3.1%
Gucci Group 1,773 + 9.2% + 14.8% 836 + 7.7% + 13.5%
Inter-company sales
and other -4 ns ns -2 ns ns
PPR 9,240 + 11.4% + 5.6% 4,793 + 18.1% + 5.6%
(1) On a comparable basis in terms of Group scope and exchange rates.
Fnac
Fnac reported a strong pick-up in the 2nd quarter, with revenues up by 6.3% on a comparable basis. Fnac France recorded a strong 4.6% increase in revenues, mainly due to technical products (+9%), increased market share in editorial products and confirmation of the success of its out of town stores, with five new store openings planned by the end of 2007. Overseas, the company maintained its strong growth momentum and recorded a 15% increase in sales in the quarter. At end June 2007, overseas business accounted for 27% of Fnac sales (up by 2 points on the 1st quarter), with five store openings planned outside France in the 2nd half.
Redcats Group
In the 2nd quarter of 2007, Redcats Group revenues were down by 1.4% on an actual basis and 4.2% on a comparable basis in an environment which remained challenging. Redcats' leading brand La Redoute held up well in France and gained momentum overseas. In the United States, The Sportsman's Guide recorded an excellent performance (+16%) and outsize brands posted satisfactory results. Redcats Group continued to reposition its other brands, triggering a significant fall in revenues in the United Kingdom and in the Misses division in the United States. Redcats Group continued to pursue the strong growth of its Internet activities (+20% in the 2nd quarter), with on-line sales accounting for 41% of mail order revenues.
Conforama
Conforama recorded a very satisfactory performance in the 2nd quarter of 2007, with the exception of Italy: the company's revenues were up 2.7% on an actual basis and 2.5% on a comparable basis. Sales in France were up sharply at +7%, driven by the strong growth in furniture (+7.5%), household electrical goods (+9%) and the excellent performance in decorative items (+21%). Excluding Italy, Conforama recorded strong growth of +3.4%. In Italy, revenues decreased by 15% in an extremely challenging environment. Transformation of the Italian Emmezetta stores into Conforama stores, whose results are significantly better, has been stepped up and will be completed by the end of 2008.
CFAO
In the 2nd quarter CFAO posted record revenues and a 21.3% increase in sales on a comparable basis, due to CFAO's exceptional expertise and strong market presence in Africa, underpinned by the favourable business climate. Growth was driven in particular by an excellent performance in the Auto business, up by 29.1%, with a 66% increase in the Mediterranean basin and a 22% increase in sub-Saharan Africa. The Pharmaceutical business continued its strong growth, with a 6.8% increase on a comparable basis in the 2nd quarter.
Puma
PPR's voluntary public takeover offer for Puma was successfully concluded on 11 July 2007, with a 62.1% stake in the company's share capital. Puma's accounts will be fully consolidated into PPR's financial statements as of 1 April 2007. In the 2nd quarter of 2007, Puma recorded a 3.1% increase in revenues on a comparable basis. Puma will release its Q2 2007 results on 9 August 2007.
Gucci Group
In the 2nd quarter of 2007, Gucci Group delivered another excellent sales performance, notwithstanding negative foreign exchange impact, particularly with Japanese customers. Revenues were up by 13.5% on a comparable basis versus Q2 2006 which was up sharply at +22%. Fashion and Leather Goods sales were particularly strong in the quarter, +18%.
Gucci Group posted double-digit growth across all geographical areas, particularly in North America (+14%), Europe (+12%), Asia-Pacific ex Japan (+22%) and Japan (+12%).
In the 2nd quarter, the Gucci brand recorded strong revenue growth (up by almost 10%), versus a high base comparison in 2006. Excluding the Watch business, the brand was up by 11.3%, driven in particular by strong performance in ready-to-wear (+18%) and footwear (+21%). Leather goods sales were up 11%, with a new best-seller in the quarter, the Indy bag, launched as part of the 2007 Spring-Summer collection. The repositioning of the Watch business continued and two new models (Signoria and Pantheon) were launched at the Basel show in April. All geographical areas were up, particularly North America (+16%) and Asia-Pacific excluding Japan (+20%).
Bottega Veneta once more reported an excellent performance in the 2nd quarter (+48%), with a sharp increase in all product categories and regions, particularly in Japan (+70%), which accounts for over one third of its sales. The new Sloane, Montaigne and Roma bags were added to the brand's many icon bags. Bottega Veneta also launched a second small furniture collection in the quarter as a result of the favourable response to the first collection launched in 2006. Bottega Veneta extended its store network last quarter with eight new store openings, including a large flagship store in Tokyo Ginza and its second store in China.
Yves Saint Laurent posted another quarter of strong growth (+13%). Excluding royalties, affected by the planned termination of an insufficiently exclusive licence, the quarterly increase stood at almost 17%. This strong performance reflects the renewed success of acclaimed collections, particularly in Leather Goods, with the Muse, Downtown, Double and Tribute bags, and the Uptown range which was launched this season and has already proved very popular. The best-performing regions in the last quarter were Europe (+28%) and Asia-Pacific ex Japan (+24%), in particular for Leather Goods (+50%).
YSL Beaute posted a 6.2% increase in revenues in the 2nd quarter, up 11% excluding the sale or termination of licences. Business was driven in particular by the strategic brands, including Yves Saint Laurent, Stella McCartney and Roger & Gallet. Fragrances including L'Homme by Yves Saint Laurent, Stella In Two and Miss Boucheron remained buoyant, as did Yves Saint Laurent cosmetic products and the Care organic care range by Stella McCartney. YSL Beaute announced the launch of Elle, a new Yves Saint Laurent fragrance for women.
Other brands - Balenciaga, Boucheron, Sergio Rossi, Stella McCartney and Alexander McQueen - again recorded strong growth in the last quarter at +24%, confirming the success of the sales drive and the excellent creative quality of each brand.
Conference Call
PPR will hold a conference call for analysts and investors: at 3 pm
(Continental Europe); 2 pm (UK); 9 am (East Coast time, USA), on
Thursday July 26, 2007.
EUROPE: +33-(0)1-70-99-42-82
Replay: +33-(0)1-71-23-02-48
UK: +44-(0)20-7138-0843
Replay: +44-(0)20-7806-1970
USA: +1-718-354-1153
Replay: +1-718-354-1112
Replay access code: 5179461# (until August 10, 2007)
PODCAST of the conference call available at: http://www.ppr.com/
PRESENTATION
The slides (PDF format) will be available before the conference call at
http://www.ppr.com/
About PPR
PPR develops a portfolio of high-growth global brands. The Group is present in 75 countries with approximately 78,000 employees. 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, Alexander McQueen and Stella McCartney), PPR generated sales of EUR 17.9 billion in 2006. In 2007, PPR acquired a majority interest in Puma. PPR shares are listed on Euronext Paris (# 121485, PRTP.PA, PPFP). For more information: http://www.ppr.com/
Appendix 1: Sales in Q2 and in H1 2007
(in EUR million) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
Fnac 2,065.1 1,954.4 + 5.7% + 5.8%
Redcats Group 2,108.7 2,144.2 - 1.7% - 4.6%
Conforama 1,522.9 1,458.4 + 4.4% + 2.5%
CFAO 1,230.6 1,113.6 + 10.5% + 19.5%
Puma 542.8 + 3.1%
Gucci Group 1,773.3 1,623.3 + 9.2% + 14.8%
Gucci 1,016.7 978.9 + 3.9% + 10.0%
Bottega Veneta 165.1 116.8 + 41.4% + 51.6%
Yves Saint Laurent 100.7 84.6 + 19.0% + 24.3%
YSL Beaute 289.7 274.9 + 5.4% + 8.2%
Other brands 201.1 168.1 + 19.6% + 23.1%
Inter-company sales and
other -3.0 0.4 ns ns
PPR - Continued
activities 9,240.4 8,294.3 + 11.4% + 5.6%
Discontinued activities
(2) 0.9 380.1
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
Fnac 997.9 938.7 + 6.3% + 6.3%
Redcats Group 1,059.5 1,074.2 - 1.4% - 4.2%
Conforama 721.3 702.5 + 2.7% + 2.5%
CFAO 636.9 566.3 + 12.5% + 21.3%
Puma 542.8 + 3.1%
Gucci Group 836.5 776.9 + 7.7% + 13.5%
Gucci 486.2 470.6 + 3.3% + 9.8%
Bottega Veneta 80.3 58.3 + 37.7% + 47.9%
Yves Saint Laurent 45.5 42.2 + 7.8% + 12.9%
YSL Beaute 137.4 133.1 + 3.2% + 6.2%
Other brands 87.1 72.7 + 19.8% + 24.1%
Inter-company sales and
other -1.5 0.8 ns ns
PPR - Continued
activities 4,793.4 4,059.4 + 18.1% + 5.6%
Discontinued activities
(2) 0.2 181.8
(1) On a comparable basis in terms of Group scope and exchange rates.
(2) Mainly France Printemps for EUR348M in H1 2006 and EUR166M in Q2
2006.
Appendix 2: Sales by region
Fnac
(in EUR million) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
France 1,502.9 1,456.8 + 3.2% + 3.1%
Spain, Portugal,
Belgium 393.1 352.1 + 11.6% + 11.6%
Brazil, Switzerland,
Italy 169.1 145.5 + 16.3% + 18.3%
International 562.2 497.6 + 13.0% + 13.6%
TOTAL 2,065.1 1,954.4 + 5.7% + 5.8%
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
France 727.0 702.5 + 3.5% + 3.4%
Spain, Portugal,
Belgium 187.3 166.0 + 12.8% + 12.8%
Brazil, Switzerland,
Italy 83.6 70.2 + 19.1% + 20.0%
International 270.9 236.2 + 14.7% + 14.9%
TOTAL 997.9 938.7 + 6.3% + 6.3%
Redcats Group
(in EUR million) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
France 969.2 1,021.6 - 5.1% - 5.1%
United Kingdom 205.4 227.1 - 9.6% - 11.2%
Scandinavia 168.9 175.6 - 3.8% - 3.9%
United States 598.0 563.1 + 6.2% - 4.7%
Other countries 167.2 156.8 + 6.6% + 7.6%
International 1,139.5 1,122.6 + 1.5% - 4.2%
TOTAL 2,108.7 2,144.2 - 1.7% - 4.6%
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
France 487.7 511.7 - 4.7% - 4.7%
United Kingdom 99.4 108.8 - 8.7% - 9.9%
Scandinavia 79.4 85.7 - 7.3% - 6.9%
United States 309.1 290.4 + 6.4% - 4.0%
Other countries 84.0 77.6 + 8.2% + 9.4%
International 571.9 562.5 + 1.7% - 3.8%
TOTAL 1,059.6 1,074.2 - 1.4% - 4.2%
Conforama
(in EUR million) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
France 1,074.7 991.0 + 8.4% + 5.1%
Italy 201.7 228.2 - 11.6% - 11.6%
Switzerland 120.5 112.3 + 7.4% + 12.2%
Other countries 126.0 126.9 - 0.7% - 0.7%
International 448.2 467.4 - 4.1% - 3.1%
TOTAL 1,522.9 1,458.4 + 4.4% + 2.5%
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
France 500.9 464.6 + 7.8% + 7.0%
Italy 104.3 123.0 - 15.2% - 15.2%
Switzerland 53.8 50.9 + 5.6% + 11.5%
Other countries 62.3 64.0 - 2.7% - 2.8%
International 220.4 237.9 - 7.4% - 6.4%
TOTAL 721.3 702.5 + 2.7% + 2.5%
(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) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
Europe 760.8 662.4 + 14.9% + 15.1%
North America 335.8 313.5 + 7.1% + 15.2%
Japan 263.1 272.8 - 3.6% + 10.8%
Asia-Pacific excl.
Japan 323.9 289.6 + 11.9% + 18.7%
Other countries 25.4 23.5 + 7.9% + 14.7%
Royalties and other 64.3 61.5 + 4.7% + 6.5%
TOTAL 1,773.3 1,623.3 + 9.2% + 14.8%
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
Europe 352.2 314.7 + 11.9% + 12.3%
North America 163.9 155.3 + 5.5% + 14.3%
Japan 122.6 126.1 - 2.8% + 12.3%
Asia-Pacific excl.
Japan 153.8 134.7 + 14.2% + 21.7%
Other countries 12.1 10.8 + 11.7% + 19.9%
Royalties and other 31.9 35.3 - 9.9% - 8.2%
TOTAL 836.5 776.9 + 7.7% + 13.5%
Gucci Brand
Breakdown by product category
(in EUR million) Change Change
H1 2007 H1 2006 Actual Comparable
(1)
Leather Goods 560.0 553.8 + 1.1% + 7.8%
Shoes 155.1 131.7 + 17.8% + 23.0%
Ready-to-wear 131.0 113.0 + 16.0% + 21.6%
Royalties and other 170.6 180.4 - 5.5% - 0.3%
TOTAL 1,016.7 978.9 + 3.9% + 10.0%
(in EUR million) Change Change
Q2 2007 Q2 2006 Actual Comparable
(1)
Leather Goods 268.4 259.4 + 3.4% + 10.7%
Shoes 70.9 61.4 + 15.5% + 21.4%
Ready-to-wear 56.4 50.5 + 11.9% + 18.1%
Royalties and other 90.5 99.3 - 8.9% - 4.1%
TOTAL 486.2 470.6 + 3.3% + 9.8%
(1) On a comparable basis in terms of Group scope and exchange rates.
Website: http://www.ppr.com/
PPR
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CONTACT: Contacts: Press: Catherine Malek, +33-(0)1-45-64-61-20,
cmalek@ppr.com; Analysts/Investors: Alexandre de Brettes,
+33-(0)1-45-64-61-49, adebrettes@ppr.com; Emmanuelle Marque,
+33-(0)1-45-64-63-28, emarque@ppr.com
