PPR has reported a major downfall in the first quarter sales today, clearly speaking of a thorny situation for the high end fashion market. The French multinational stated that a 2.6 per cent plunge in profits, which in comparison to the equivalent exchange rates stands closer to 5 per cent. However this season was fabulous for Gucci, causing a prop up in the profits as the label declared a sales increase of approximately 10 per cent for the same period.
During past year, luxury brands have declared that the highest end of their business, including couture, seemed to be going much smoothly and beneficial than ready-to-wear and retail, which in the case of labels such as Christian Lacroix had suffered greatly. Gucci successfully cashed that trend, even though the retail business was giving a better return in the first part of 2009.
Reports of difficulties at high end jewelry and watch brands, like Bulgari and Tiffany & Co, are also accurate for PPR too though, sales in those categories suffered a major 3.4 per cent drop compared to last year.
PPR, which manages Gucci, Yves Saint Laurent, Bottega Veneta, Alexander McQueen, Stella McCartney and Balenciaga is in fact administered by French retail mogul Francois-Henri Pinault; the same person who Salma Hayek got married to this year in February.