PPR Shares Rise in Paris After Sales Beat Analyst Estimates
PPR (PP) SA, owner of the Gucci fashion brand, advanced in Paris trading after reporting first-quarter sales that beat analysts’ estimates and saying it’s confident of surpassing its 2010 financial performance.
The stock climbed as much as 2.2 percent, the biggest intraday gain in more than a month, and traded at 120.80 euros, a 2 percent advance, as of 9:20 a.m. in Paris. PPR has risen 16 percent in the past year, valuing the maker of $725 covered gladiator sandals at 15.3 billion euros ($22.7 billion).
Revenue from continuing operations rose 9.1 percent to 3.71 billion euros, the Paris-based company said yesterday in a statement after markets closed. The average estimate of four analysts compiled by Bloomberg was for sales of 3.61 billion euros. Excluding acquisitions and currency moves, luxury-goods sales climbed 22 percent even as revenue from these products declined 7 percent in Japan, PPR said.
PPR’s luxury division is “the key highlight,” Antoine Belge, an analyst at HSBC Holdings Plc who rates PPR “overweight,” wrote in a note after the release. He said the results “back up our thesis that the Gucci brand will catch up with best-in-class in 2011 and that Bottega Veneta and Balenciaga would confirm their rising star status.”
Overall sales increased 24 percent at Gucci, PPR’s largest luxury brand, and 38 percent at its Bottega Veneta leather goods and clothing unit. The Balenciaga brand had “vigorous double- digit sales growth,” PPR said.
To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net.
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