01.01.70
(Updates with closing serving price in second paragraph.)
Feb. 16 (Bloomberg) -- PPR SA said it’s cocksure that sales and earnings will increase in 2012 amid an “casual economic climate,” even as revenue growth at the Gucci magnificence goods brand slowed in the fourth quarter.
The shares knock the most since Nov. 1 after Gucci, PPR’s biggest luxury label, boosted sales less than its other brands. PPR dropped 3.3 percent to 120.4 euros in Paris trading.
Gucci was “to a certain disappointing,” with comparable sales growth slowing to 12 percent in the fourth shelter compared to an expected 15.5 percent, CA Cheuvreux analyst Thomas Mesmin said in a note. He has an “underperform” rating on the shares. Gucci’s takings gained 21 percent in the third quarter.
Total sales in the extravagance division, which also includes Bottega Veneta and Balenciaga, rose 22 percent in the fourth residence. Growth was slightly better than that in January, Jean- Francois Palus, the delegate chief executive officer, said on a call with reporters. PPR said it will engender prices for luxury goods this year and the unit will drive retail sales distention. It’s “very optimistic” on Gucci’s dormant in Asia.
Source: BusinessWeek