Retail-to-luxury group PPR posts increase in full year net profit and launches sales offensive

PPR full year net profit increases 7 percent

PARIS — Retail-to-luxury group PPR SA reported a 7 percent increase in 2009 profits Thursday and said it is launching a sales offensive to boost revenues in fast-growing markets such as China.

PPR, owner of the Yves Saint Laurent and Gucci brands, said net profit rose to euro984.6 million ($1.35 billion) after it sold its African distribution business CFAO.

The sale in December raised euro806 million and is part of PPR’s strategy to “refocus” on its luxury and lifestyle businesses.

The group did not break out quarterly profit figures.

CEO Francois-Henri Pinault said he is starting the year “with determination and confidence.”

“We are launching an energetic sales offensive aimed at further strengthening our leadership on the highest-growth markets, such as e-commerce and emerging countries, and at raising our business and financial performances in 2010,” he said in a statement.

CFO Jean-Francois Palus told journalists in a conference call that PPR is switching from a priority of cost reduction to trying to boost sales through product launches and catalogs.

PPR wants to expand its network of stores in growing markets, he said.

Revenue fell 4 percent to euro16.52 billion in 2009 and 3.2 percent in the October to December quarter.

Revenue at PPR’s Gucci Group subsidiary, which comprises luxury fashion and leather brands such as Yves Saint Laurent and Bottega Veneta as well as its namesake Gucci brand, was down 0.3 percent at euro929.2 million in the fourth quarter.

PPR’s FNAC books and electronics chain reported a 0.8 percent increase in quarterly revenue to euro1.56 billion, and its Conforama furniture stores saw 0.1 percent sales growth to euro848.8 million in the period.

The Redcats catalog unit reported a 9.9 percent fall in revenue to euro904 million.

PPR’s German sportswear company Puma AG on Wednesday reported a doubling of net income for the fourth quarter to euro16.2 million as the company lowered expenses and saw higher operating profits.