PPR Rises Most in Five Months as Gucci Increases Revenue
PPR SA (PP), the French owner of the Gucci luxury brand, rose the most in almost five months in Paris trading after the company reported first-quarter sales that exceeded analysts’ estimates.
The shares gained as much as 5.3 percent to 126 euros, the steepest intraday advance since Nov. 30 and the third-biggest climb in the French benchmark CAC Index.
PPR said late yesterday that revenue from continuing operations rose 15 percent to 3.26 billion euros ($4.3 billion) in the first quarter, exceeding the 3.15 billion-euro average of six analysts’ estimates compiled by Bloomberg. Excluding acquisitions and currency swings, the growth was 7.9 percent.
Revenue growth of 33 percent at the Bottega Veneta luxury brand and 40 percent at Yves Saint Laurent “smashed expectation,” Simon Irwin, an analyst at Liberum Capital in London, said in a note. PPR “did enough to reassure fears over Gucci,” where sales climbed 12 percent on a comparable basis, matching the gain in the previous quarter.
PPR was up 4.3 percent at 124.90 euros as of 9:23 a.m. in Paris, valuing the company at 15.7 billion euros.
To contact the editor responsible for this story: Sara Marley at email@example.com