In the first nine months of 2007, PPR posted revenues of €14.4 billion, up 15% on an actual basis and up 6% on a comparable basis compared to the same period in 2006.
Revenues include sales of Puma, fully consolidated as from April 1, 2007. Revenue growth on a pro-forma basis (including Puma as from January 1, 2006) would have amounted to 6.1% in the first nine months of 2007.
In the 3rd quarter of 2007, the Group recorded sales of €5.2 billion, up 21.9% on an actual basis and 6.8% on a comparable basis versus Q3 2006. Revenues outside France accounted for 61% of the total, versus 56% in Q3 2006.
Commenting on the quarter, François-Henri Pinault, Chairman and Chief Executive Officer of PPR, stated: “PPR turned in another set of robust performances in the third quarter despite the more challenging monetary environment and economic outlook.
Once again, these numbers reflect the efficiency and balance of our Group, both in terms of businesses and in terms of geographical presence. ”
Fnac posted 7.1% growth in sales on a comparable basis. In this quarter, Fnac France gained market share in all segments and recorded growth of 5.2%, underpinned by sales of technical products (+10%).
In August, Fnac continued to expand its presence outside city centers, opening its third out-of-town store in Thiais. Four new stores are scheduled to open by the end of 2007.
Highlights of the quarter included the successful launch of Fnac’s new home-services activity (training, installation, technical assistance) and the unveiling of Fnaclive, a new community and cultural website.
With the adoption of a new slogan, “Agitateur de curiosité” (“Stirring curiosity”), supported by a major advertising campaign, the brand has reaffirmed its vocation.
Fnac pursued its growth outside of France, with sales up by 16% for the quarter. Fnac now operates 51 international stores, which account for 27% of its revenues. Two additional stores will open outside France in the fourth quarter.
In the 3rd quarter of 2007, Redcats Group sales were down by 0.6% on a comparable basis. However, the leading brands of the Redcats Group posted satisfactory sales performance, notably La Redoute – boosted by good performance during the sales period – The Sportsman’s Guide, US large-size apparel brands, and Scandinavian brands.
In line with its multi-channel approach and strategic focus on its leading brands, in September Redcats launched a takeover bid for United Retail of the US; this transaction should generate considerable operating synergies.
Additionally the Children-Family segment posted good performance, while the Seniors brands, Misses in the US and Redcats UK pursued their repositioning. Finally, online sales increased by 22% in Q3, accounting for 41% of total home-shopping revenues.
In the 3rd quarter, Conforama sales were up 1.4% on a comparable basis and 1.8% on an actual basis. Performance in the French market was satisfactory (up 4%), driven by strong growth in furniture (up 6%), brown goods (up 12%) and decorative items (up 12%).
Conforama pursued its advertising campaign in the quarter, achieving unprecedented results for a retail brand, with a 92% positive rating.
The brand opened its 57th store outside France, stepping up its international expansion with a 1.7% increase in sales excluding Italy. In Italy, sales were down 13% as Conforama accelerated the transformation of Emmezetta stores.
PPR Group
