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Retail to luxury company PPR reports 35 percent rise in 2007 profit

Retail to luxury company PPR reports 35 percent rise in 2007 profit

Retail-to-luxury company PPR SA Wednesday reported a 35 percent rise in net profit in 2007, behind fast sales growth in its luxury and African retail divisions and a boost from its newly acquired sportswear business Puma.
PPR, owner of the Yves Saint Laurent and Gucci brands, said net profit for 2007 rose to euro922 million (US$1.37 billion) compared to euro685 million a year ago.
The latest performance beat analyst expectations of about euro850 million ($1.26 billion), according to a Dow Jones Newswires survey of four analysts.
PPR reported annual sales in 2007 of euro19.76 billion ($29.39 billion) in January and relayed an optimistic message for the start of 2008.
Operating profit was euro1.7 billion ($2.53 billion), up 33 percent from a year ago. PPR credited a 27 percent increase in operating profit at CFAO, its African retail line, and a 29 percent gain at its high-end Gucci division.
PPR did not break out its fourth-quarter figures in its annual statement.
A number of analysts have lowered estimates for the company's earnings this year citing the likelihood an economic slowdown in the U.S. will reduce demand for a range of the company's products. Analysts are also concerned the credit crunch could weigh on the global appetite for luxury products.
"We don't expect a significant change compared to last year although the economic environment is globally more complicated," said Chief Financial Officer Jean-Francois Palus in a conference call Wednesday.
PPR owns a 63.6 percent stake in Puma, which on Tuesday reported that its net earnings last year rose 2.2 percent to euro269 million ($400 million).
Shares of PPR edged up 0.8 percent to euro96.27 ($143.19) in early trading Wednesday on the Paris stock exchange.


Updated : 2021-05-17 18:28 GMT+08:00