The continuously uncertain future under the new management of Gucci Group has led investors to sink by 6 percent the stock market price of its parent company, Pinault Printemps Redoute (PPR), although it reported yesterday a 61.5 percent increase in consolidated net profit to €191.1 million for the first six months of this year. The disposal of a financial subsidiary, Finaref, brought in extraordinary gains that offset various charges, including an asset writedown of €147.7 million and restructuring charges of €51 million, both related to its luxury goods activities.
The group’s operating profit declined by 2 percent to €569.2 million but grew by 15.6 percent on a comparable basis, with an increase of 33 percent €150 million for the luxury goods business, whose sales increased by 11.1 percent on a pro forma basis to €1.33 billion, as previously reported. In particular the Gucci division improved its operating profit by 6.1 percent, while Bottega Veneta, Boucheron and the new designer brands reduced their losses considerably.
The group’s management feels that Gucci Group will do better. Between May and July, sales were up 16 percent for the Gucci brand and 21.5 percent for Yves Saint Laurent.