PPR's (Pinault-Printemps-Redoute) luxury strategy pays off
PPR's decision to focus on the luxury-goods market is finally paying off: Demand for top fashions and accessories in Gucci Group, which it owns, helped PPR's first-half earnings even as a deteriorating retail environment sapped strength from its other units, the company said Thursday.
Seventeen months after its star designer, Tom Ford, and chief executive, Domenico De Sole, left the company, Gucci Group delivered a 76 percent gain in operating profit to 107.4 million, or $133 million, helping to lift PPR's net income 13 percent to 169.6 million from a year earlier. Earnings at Gucci Group's retail division fell 4.2 percent to 269 million, PPR said.
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