PPR SA may eventually include the Gucci brand in its e-commerce luxury venture with Yoox SpA as it seeks to get online sales of more than 1 billion euros ($1.3 billion) by 2020, Managing Director Jean-Francois Palus said.
When the joint venture proves its full potential, “then we will consider having Gucci join the platform,” Palus said today at a presentation to reporters in Paris.
PPR and Yoox agreed in May to set up an online venture for the Bottega Veneta, Stella McCartney, Sergio Rossi, Yves Saint Laurent, Alexander McQueen and Balenciaga brands. The first two brands will be offered by the end of the year, joining Sergio Rossi, and the others will follow in 2013, said Federico Barbieri, PPR senior vice-president for e-business. Gucci will continue to run its own e-commerce for now, he said.
PPR, based in Paris, may develop a similar e-commerce venture for its sports and lifestyle brands, which include Puma, Palus said. That won’t necessarily be with Yoox, he said.
Yoox shares climbed 3.1 percent to 10.62 euros in Milan. PPR advanced 0.2 percent in Paris.
PPR will make an announcement concerning the sale of its online retailer Redcats before Oct. 25, when it presents third-quarter sales, Chief Executive Officer Francois-Henri Pinault said. The process is ongoing, he said, declining to give further details.
The French company plans to sell Redcats in pieces after failing to secure a buyer for all the unit, two people with knowledge of the matter told Bloomberg News in July. PPR is reorganizing to focus on luxury, sports and lifestyle brands, which may help double sales to 24 billion euros by 2020, it has said.
While PPR is focused on organic growth, it will still make acquisitions that complement its business in terms of price, product or geography, Pinault said. PPR has said it expects acquisitions to account for 20 percent of its 2020 revenue goal.
PPR said in July it was in discussions to buy a Chinese luxury company to bolster growth in its largest market for high-end goods. There’s “nothing concrete” for now, Pinault said today.
Volcom, the surf-and-skatewear brand PPR acquired last year, will open two European stores this month and will expand in China, PPR’s sports and lifestyle division Chief Operating Officer Todd Hymel said. PPR also plans to develop the Tretorn footwear brand and will name a new CEO for the unit in the next two weeks, he said. The Electric brand will focus on premium technical accessories, adding ski helmets from 2013, he said.
PPR executives spoke today at a presentation about the company’s new corporate structure. By centralizing some support functions and sharing expertise across brands, PPR can improve performance, Palus said, citing Volcom’s extension into footwear, aided by Puma.