PPR 2012 results slightly exceed expectations

PARIS - French luxury and sports brand group PPR posted an annual operating profit slightly above expectations as the resilient growth of its fashion labels helped make up for lower profitability at its Puma sports brand.

The owner of the Gucci, Yves Saint Laurent and Bottega Veneta fashion brands saw operating profit reach 1.76 billion euros in 2012 against a Thomson Reuters I/B/E/S estimate of 1.70 billion euros.

PPR's luxury division saw its revenue rise 14 percent in the fourth quarter, with Gucci, the world's second-largest luxury brand behind Louis Vuitton up 8.2 percent in comparable terms and Bottega Veneta up 32.7 percent.

PPR is in the process of selling its mail order business Redcats and spinning off its retail chain Fnac, allowing it to recognise them as discontinued operations in its accounts.

The group nevertheless reported a net loss of 276 million euros for the units, which included restructuring charges of 149 million euros and 288 million euros in impairment charges.

It did not give a more precise forecast other than to say it expected to continue increasing sales and profits in 2013.

PPR proposed a dividend of 3.75 euros a share for 2012, up 7 percent against the previous year.