|Bottega Veneta Spring Summer 2013 Ad Campaign|
PPR results showed an increase in consolidated revenue from continuing operations up 20.8% (at €9,736 million), on 2011.
Revenue generated outside the Eurozone was up 11.6% in 2012 accounting for 78.6% of sales for the year compared to 77.9% in 2011. This of course reduces the Group's reliance on the European economy as it continues its expansion in rapid-growth markets where revenue rose by 13.7%, yet one is conscious of the fact that for luxury goods it is paramount to capture their clients wherever they may be whether their home markets or travelling abroad. APAC region (excluding Japan) accounted for 25% of the total sales of the Group's brands versus 24.5% in 2011 on a comparable basis.
The luxury brands of the Group showed steady and continued growth with revenues +26.3%.
Yves Saint Laurent showed a sound performance with revenues up +33.7% from EURO353.7M and EURO472.8M, as it is growing closer to attaining a good degree of critical mass.
Bottega Veneta, the true star of PPR's 2012 results with revenues up +38.5% from EURO682.6M to EURO 945.1M continues to benefit from the gradual maturing of the new emerging markets, with more discerning customers slowly but surely moving towards just as recognisable brands that however are more expensive and do not carry a logo. In other words the fine and uncertain line between showing that you have money but trying to do so in a more subtle way. They thus fit into a more exclusive globally recognised club of wealthy individuals. In essence Bottega Veneta is benefitting from a gradual trading up and maturing from global luxury markets.
Gucci who saw revenues rise 15.8% from EURO3,143.2M to EURO3,638.8M, will of course continue to grow as it continues to access new pockets of wealth but a part of its business will invariably shift towards 'non-logo' brands such as Bottega Veneta.
2012 saw quite a few changes for the PPR group including:
- Closing of the Brioni Acquisition
- Sale of PPR's residual stakein CFAO
- Initiated plan to demerge and float FNAC (something which some analysts have suggested may prove easier said than done due to FNAC's unprofitable status)
- Ongoing divestment of Redcats Group
- Acceleration and expansion of Puma's Transformation Programme
- Saw Standard & Poor's announce that it had upgraded PPR's long-term rating from "BBB-" to "BBB" with a stable outlook,
- Announced the appointment of Hedi Slimane as Creative Director at Yves Saint Laurent
- Signed joint venture agreement with YOOX Group to create companyentirely dedicated to managing the online stores of several of PPR's Luxury brands: Yves Saint Laurent, Alexander McQueen, Balenciaga, Bottega Veneta, Sergio Rossi and Stella McCartney.
- Appointed Alexander Wang as Creative Director at Balenciaga.
François-Henri Pinault, Chairman and Chief Executive Officer, commented:
“PPR's results for 2012 are excellent, thanks to the exceptional performances of all brands in our Luxury Division. The significant growth potential of our brands is driven by their strength, the outstanding quality of their products and the rigorous development of their distribution channels. This potential was once again demonstrated in our Luxury Division in 2012 and we are striving to achieve the same dynamic in the Sport & Lifestyle Division. Our strong performance also highlights the good geographic balance of our activities and the consistency of the Group's strategy. In 2012, we completed further important steps in our transformation into a more international, dynamic and profitable group. We are confident that the strengthening of our assets and the determination of our teams will allow us to continue significantly improving our operating and financial performances in 2013.”