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PPR sees 12.9% rise over third quarter

French luxury goods company PPR has reported a 12.9% rise in sales in the third quarter, driven by double digit growth across its luxury brands and an improved performance by sports brand Puma.

Group revenue over the three months to September 30 rose to €4.46bn (£3.83bn), while revenue for the year to date rose to €12.6bn (£10.9bn), up 6.7% compared to the first nine months of last year.

Gucci Group, which operates the eponymous brand and others including the Alexander McQueen label, Stella McCartney and Yves Saint Laurent, saw sales rise by 16.7%, with both retail sales and wholesale up by 16% over the quarter. The group continued to gain ground in emerging markets, where sales grew by 24%, but it also saw sales rise by 13% in mature markets, due to “accelerating trends” in Europe and North America.

Alexander McQueen delivered ” a sharp increase” in sales over all product categories in all regions during the quarter and Stella McCartney delivered double digit sales growth over the quarter.

Sales for the Gucci brand were up by 14.8% over the quarter, with solid performance across all product categories. It saw “similar” growth rates of 14% across wholesale and its 308-strong retail network. Sales in emerging markets rose by 22%, with Greater China accounting for 22% of all Gucci sales over the three month, while a “remarkable” performance in Western Europe, which reported a 28% sales increase, drove a 10% rise in its mature markets.

Yves Saint Laurent reported a 13% rise in sales, with sales from its 71 owned stores up by 14% over the period, wholesale up by 12% and revenue from royalties also up by 12%. Leather goods performed particularly well, accounting for 32% of the quarter’s revenues, while all regions except Japan posted sales growth. Leather goods also fuelled sales at Bottega Veneta, which reported a 27.3% rise in overall sales. The luxury fashion brand saw double digit sales across all regions but sales jumped by 47% in Greater China. It has 144 stores.

Puma saw a 4.9% rise in sales for the quarter, with double digit increases in August and September, although sales dipped by 1.6% over the first nine months. Wholesale activity improved by 7%, while sales from directly-owned stores improved. Sales rose by 22% in the Americas, with a solid performance in all product categories, but fell by 2% in Europe, the Middle East and Africa. Asia-Pacific recorded a 1% rise due to footwear and accessories. The brand said it has booked “substantial” order levels across all regions.

Francois-Henri Pinault, PPR chairman and chief executive, said: “This quarter PPR delivered a sharp acceleration in sales growth, with all activities contributing to this improving trend.

“Our very good overall performances are fueled by vigorous marketing momentum, notably online and internationally. These achievements reinforce our confidence in our ability to strengthen our full-year operating and financial performances and constitute a solid platform for sustained profitable growth going forward.”

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