2003 Fourth Quarter and Full Year Sales

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Ø Strong growth for the New PPR: 3.9% on a comparable basis* in Q4 and 3.8% over the full year against a difficult backdrop
Ø Retail: excellent sales performance in France and continued international success
Ø Luxury Goods: sharp rebound since the summer
 
 
 
Click to download the complete release with tables(.pdf - 52 Ko)
 
 
Serge Weinberg, Chairman of the Management Board of Pinault-Printemps-Redoute, made the following statement:
 
"With a robust fourth quarter, our Retail companies achieved a remarkable performance in 2003. Against a backdrop of sluggish household consumption in France, particularly in the second half of the year, PPR companies consolidated their leadership positions on fiercely competitive markets. Outside France, growth was confirmed and accentuated, with some outstanding performances in European mail-order activities and in Home and Leisure activities, notably in southern Europe. The marked recovery seen in Luxury Goods since the summer, following a challenging first half, reflects the structural growth potential of the leading brands in this sector. Overall, sustained sales growth at the New PPR, on a comparable basis, underscores the strength of our companies and reinforces our strategic decision to focus on the individual customer."
 

in EUR million

Q4 2003

Q4 2002

Change

12 mos 03

12 mos 02

Change

 

Reported

Reported

Reported

Comparable**

Reported

Reported

Reported

Comparable**

RETAIL*

4,332.2

4,288.1

+1.0%

+3.1%

13,903.2

13,761.3

+1.0%

+3.6%

LUXURY GOODS

694.9

644.7

+7.8%

+9.2%

2,560.5

2,541.7

0.7%

+5.4%

NEW PPR

5,027.1

4,932.8

+1.9%

+3.9%

16,463.7

16,303.0

+1.0%

+3.8%

Rexel

1,697.4

1,856.8

-8.6%

-2.7%

6,658.4

7,374.4

-9.7%

-2.8%

Sold FinancialServices activities

0.0

868.9

na

na

1,268.8

3,756.8

na

na

(Inter-companysales)

 (12.6)

 (18.1)

na

na

 (30.1)

 (58.8)

na

na

TOTAL

6,711.9

7,640.4

-12.2%

+2.3%

24,360.8

27,375.4

-11.0%

+1.8%
* Adjusted for changes in Group scope, exchange rates and number of days. The effective change includes the impact of the disposal of PBM, Guilbert and the Credit and Financial Services businesses.
** Apparel & Lifestyle Division, Home and Leisure Division, Kadeos, non-sold Credit and Financial services businesses, CFAO.
 
 
 

 
Pinault-Printemps-Redoute: Reported sales of Pinault-Printemps-Redoute totaled EUR 24,360.8 million in 2003. The change reflects the negative net impact of changes in Group scope primarily linked to the strategic disposal of businesses (Credit and Financial Services, Pinault Bois & Matériaux, Guilbert), which amounted to nearly EUR 2.5 billion, and changes in exchange rates totalling EUR 991.5 million, mainly due to the depreciation of the dollar and, to a lesser extent, the pound sterling against the euro.
 
New PPR: The "New PPR" recorded sales of EUR 16,463.7 million in 2003, registering sales growth of 1.9% in the fourth quarter and 1% over the full year, despite unfavourable currency effects.  Adjusted for changes in Group scope, exchange rates and number of days, sales rose by 3.9% in the fourth quarter and 3.8% over the full year.
 
 
 

 
Adjusted for changes in Group scope, exchange rates and number of days, sales of the Group's Retail activities were up by 3.6% in 2003, including a rise of 3.1% in the fourth quarter, which continued the steady climb from 2.3% in the second quarter and 2.8% in the third quarter. The Home and Leisure division confirmed its sustained growth of the third quarter, rising 4.9% in the fourth quarter, while the Apparel and Lifestyle division held up well, dipping by only 1.9%, after a drop of 2.4% on a comparable basis in the third quarter.  
 
The Group's Retail activities generated on-line sales of EUR 751.7 million, up 52.7% over the 2002 level. Pinault-Printemps-Redoute ranks among the European-commerce leaders.
 
 
q       Home and Leisure Division
 
Conforama
Conforama sales grew by 1.2% in the fourth quarter and by 2.1% in 2003.
 
In France, the company limited the drop in activity to 0.4% over the full year, reflecting its dynamic sales performance in a very challenging market, notably in home furnishings. In 2003, Conforama began modernising its store concept in France, in particular adopting a new look and a new, in-store customer path. The 11 stores that were adapted to the new format produced very encouraging initial results, in the fourth quarter, posting significantly higher growth than other stores. In 2004, the company plans to refurbish some thirty stores and open four new stores in France.
 
Conforama confirmed its success outside France, recording growth of 5.7% in the fourth quarter and 7.2% for 2003. In 2003, growth in activity was notably boosted by the excellent performance of Conforama stores in Spain (20.5%), Portugal (11.4%) and Poland (9.8%), as well as Switzerland (4.2%), despite the challenging macroeconomic climate. In 2003, the company opened four stores overseas (Grancia in Switzerland, Pamplona and Oviedo in Spain and Albufeira in Portugal), all in the new store format.  The company's Italian subsidiary, Emmezeta, recorded sales growth of 4.2% in Italy, despite the lacklustre economic climate, and 24.4% in Croatia. Three new Emmezeta superstores were opened in 2003, in Padova in Italy as well as Osiek and Spalato in Croatia. In 2004, the company plans to open three new stores in Spain and a Conforama store in Italy.
 
 
Fnac
Adjusted for changes in scope, exchange rates and number of days, Fnac sales grew by 7.4% in the fourth quarter and 7.6% over the full year.
 
In France, Fnac's activity was up by 4.3% in the fourth quarter and 3.3% over the year.  Sales of technical products rose by 9.8% in the fourth quarter and 6.1% over the year. Photography products and services recorded spectacular growth (23.9% in the fourth quarter and 18.8% over the year), thanks to the digital boom. TV-Video showed a marked turnaround with growth of 9.8% in the fourth quarter and 1.4% for the year. Sales of IT equipment grew sharply in the fourth quarter (up 10.2%), and rose by 5.7% over the year. Sales of books and music grew by 2.3% in the fourth quarter and 0.8% in 2003. Book sales were up by 5.1% in the last quarter and 3.5% over the full year. Despite the decline of the music market, CD and DVD sales increased slightly in the fourth quarter (up 0.4%) and recorded a limited drop of 1.2% for the year. In France in 2003, editorial products accounted for 45% of revenues, with technical products representing the remaining 55%, as compared to 46% and 54% in 2002.
 
Three new stores opened in 2003 in Chartres, Evry and Grenoble. The Bordeaux store was transferred and expanded, while Forum des Halles store in Paris expanded its selling space by 1,700 sq. m. In 2004, Fnac plans to open two new stores in France, in Lorient and Perpignan.
 
The French subsidiaries recorded growth of 11.9% in the fourth quarter and 18.1% over the full year. Surcouf's activity climbed by 26.9% over the year, while the Children's division, bolstered by the strength of Eveil & Jeux, posted sales growth of 5.2% for the year. On-line sales of fnac.com benefited from 85.6% growth in technical goods and recorded a 48.8% rise in 2003. The site now ranks ninth amongst all Fnac stores in France.
Adjusted for changes in scope, exchange rates and number of days, Fnac's international sales rose by 15.1% in the fourth quarter and 15.4% over the full year. International activity accounted for 24.7% of total Fnac store sales in 2003, representing a two-point increase on 2002 (22.7%). This outstanding performance confirms the company's successful international expansion. Five new stores were opened outside France in 2003: in Naples in Italy, Marbella in Spain, Porto in Portugal, Fribourg in Switzerland, and Sao Paulo in Brazil, taking the total number of stores to 35. Fnac confirmed its strong international success with robust performances in Spain (11.7%) and Portugal (14.1%). In countries where Fnac's expansion is more recent, Fnac posted growth of 13.6% in Brazil, despite the deteriorating economic background, of 43.3% in Switzerland and 64.2% in Italy. Four new stores are planned for 2004, two in Madrid, Spain, and two in Brazil, in Brasilia and Curitiba.
 
The company's Internet sales (fnac.com, surcouf.com, eveiletjeux.com) totalled EUR 113.4 million, up 50% in 2003, and now account for 3% of Fnac's total sales.
 
 
q       Apparel and Lifestyle Division
 
Printemps
Adjusted for changes in scope, exchange rates and number of days, Printemps sales recorded a slight dip of 0.5% in the fourth quarter, thereby limiting the full-year decline to 1.4%.
 
Department Stores closed 2003 with a 2.1% drop in activity, but dipped by only 1% in the fourth quarter, despite sluggish consumption. In 2003, activity fell by 5.2% for the Haussmann store, impacted by the collapse in international tourism (down 21%) and construction on the expansion of the Beauty Department. However, the new Beauty Department has been a huge success since it opened in November, recording 10% growth in the fourth quarter, including 31% in December.
 
The entire Chain is holding up even better with growth of 0.4%, including a rise of 8.8% in Women's Fashion. Despite the difficult business climate, both the Haussmann store and the Chain continue to gain market share against their main competitor.
 
The refurbishing and expansion of Madelios continued in 2003, impacting sales, which were down by 12.8% over the full year. The new Madelios is operating since the beginning of 2004 and will be fully operational upon completion of the current works in Spring 2004.
 
The Sports division further accelerated its development with sales growth of 14.9% in the fourth quarter and 12.2% over the year. Two stores were opened by Made in Sport in 2003, in Nîmes and Plan de Campagne, next Marseilles.
 
 
Redcats
Adjusted for changes in scope, exchange rates and number of days, Redcats sales slipped by 2.3% in the fourth quarter and grew by 0.4% over the full year 2003.
 
Activity remained stable in France in the fourth quarter, compared with 3.6% growth in the fourth quarter of 2002. Redcats recorded sales growth of 2.1% in France for the year. La Redoute, which turned in sales growth of 3.3% in France, continued to strengthen its positions, notably thanks to improved marketing and customer segmentation and its buoyant e-business activity. La Maison de Valérie confirmed its turnaround with growth of 1.2% for the quarter and 2.1% for the year.  In the specialised division, activity continued to be driven by Vertbaudet France (4.5% in the fourth quarter and 7.7% for the year) and was marked by the recovery of the Seniors catalogues (up 1%) in the fourth quarter, following a difficult third quarter due to the heat wave in France. The Seniors catalogues posted sales growth of 1.2% over the year. Cyrillus pursued the redevelopment of its concept.
 
Outside France, La Redoute confirmed its success with 10.5% growth for the year, buoyed by strong performances in the UK (7.1%), Switzerland (14.6%), Sweden (16.8%) and Spain (49.1%). International sales now account for 21.5% of La Redoute's total sales. Abroad, specialised catalogue activities were driven by Vertbaudet, up by 9.1% in 2003, and Seniors catalogues, up by 10.9% for the year.
 
In the US, Brylane recorded a drop in sales of 8.2% in the last quarter and 3.8% for the year despite a highly deflationary climate for the textile market. The Women's division recorded a fall of 6.9% in 2003, reflecting contrasted trends between Chadwick's down 11.5% and Lerner up 21.5%, thanks to its successful repositioning. The "Special Sizes" activity contracted by 6.5%. However, Home Furnishings activities grew by 16.3% in 2003, with Brylane Home up by 6.2% and the continuation of the initial success of Brylane Kitchen and Brylane Wishes.
 
Redcats Nordic's registered a 5.3% upturn in 2003, including 1.4% growth in the fourth quarter, compared with a 2.2% rise in the fourth quarter of 2002. 2003 saw the launch of Seniors catalogues "Nuova" and "Enjoy" in Finland and "Joseffsons" in Norway. Sales of Redcats Nordic climbed by 3.3% in Sweden, 3.7% in Norway and 17% in Finland.
 
Despite the continued economic downturn, the trend improved slightly for Redcats UK in the fourth quarter, falling by only 5.5%, compared with an 9.2% drop over the full year.
In 2003, Internet sales stood at EUR 614.2 million, up by 55% on 2002. This channel accounted for 14.1% of sales in 2003 versus 9.5% in 2002. Brylane generated 23.6% of its sales online, with Redcats Nordic recording 19.2% and La Redoute 13% of total sales via this channel.
 
 
Orcanta
Orcanta's sales grew by 5.4% in 2003. The chain now operates 64 stores.
 
 
q       Kadéos
The Group's gift voucher activity, Kadéos, had 2003 revenues of EUR14.2 million, representing commissions related to the issuance of vouchers. In 2003, total issuance of gift vouchers exceeded EUR 300 million, up by more than 20% from the 2002 level.
 
 
q       CFAO
Adjusted for changes in scope, exchange rates and number of days, CFAO sales rose by 12.2% in the fourth quarter, after 10.1% in the third quarter and 6% in the first half of 2003. This strong growth reflects CFAO's development potential in all of its activities, despite persistent difficulties in central Africa.
 
In 2003, the business excluding the Pharmaceuticals and Technologies grew by 11.6% in the French overseas departments and territories, 9.6% in North Africa and 17% in eastern Africa and fell by only 0.5% in western and central Africa, due to difficulties in Nigeria, Congo and the Ivory Coast.
 
The Pharmaceuticals business expanded by 14.2% in 2003, including 17.8% in the fourth quarter with improving trends in sub-Saharan Africa and in the French overseas departments and territories, and particularly strong growth in Egypt.
 
CFAO Technologies posted 37.6% growth in 2003, its second year of activity.
 
 
 

 
Adjusted for changes in scope and exchange rates, Gucci Group sales climbed by 5.4% over the full year, including a marked rebound of 9.2% between August and October, which reflects this activity's long-term growth potential.
 
Gucci: In the August-October quarter, reported sales were up by 4.8% for the Gucci division. With sales growth of 9.5% on a comparable basis in the quarter, Gucci division sales were virtually unchanged (down 0.2%) over the full year. In the fourth quarter, retail sales at constant exchange rates increased by 9.4% in Europe, 20.4% in the US, 10.7% in Japan and 8.1% in Asia excluding Japan.  At constant exchange rates, retail sales of leather goods and shoes rose by 15.5% and 17.6% respectively.
 
Yves Saint Laurent: At constant exchange rates, Yves Saint Laurent sales rose by 10.3% in the fourth quarter and 18.3% over the full year. At constant exchange rates, retail sales were up by 27.3%, notably boosted by activity in the United States (up 54.8%), Japan (up 58.2%) and Asia excluding Japan (up 67%). Sales of leather goods and shoes rose by 37.8% and 41.8% respectively. Yves Saint Laurent continued to expand its ranges of leather goods with, for example,in the autumn-winter season, the Saint Tropez handbag and the Cassandra line. In the fourth quarter, Yves Saint Laurent opened a flagship store in Hong Kong, completed the refurbishment of its flagship store in Paris and expanded its London store.
 
YSL Beauté: Sales at Yves Saint Laurent Beauté increased by 10% in 2003, including 9.8% in the fourth quarter. Sales of Yves Saint Laurent brand products climbed by 19.9% at constant exchange rates, notably with increased sales of fragrances (21.2%), cosmetics (13.8%) and skincare products (22%). The initiatives taken to reposition the brand at the top end of the market are beginning to pay off. Yves Saint Laurent Beauté launched the first fragrance by Stella McCartney, Stella, which has performed extremely well since September.
 
Other brands: Bottega Veneta's retail sales soared by 51.5% at constant exchange rates, with spectacular performances in the US (92.2%), Asia excluding Japan (109.5%) and Japan (up 46.7%). Sales in directly operated Sergio Rossi shops rose by 17.1% at constant exchange rates, thanks to outstanding growth in the US (65.8%) and Japan (44.3%) Alexander McQueen and Stella McCartney saw their sales soar by 20.8% and 65.5% respectively.
 
 
 
 
 

Adjusted for changes in Group scope, exchange rates and number of days, Rexel sales fell by 2.7% in the fourth quarter of 2003. Over the full year, sales were down by 2.8% when adjusted for changes in Group structure, exchange rates and number of days and by 9.7% after accounting for the negative impact of changes in Group structure totalling EUR 84 million (primarily the sale of Gardiner), and unfavourable exchange rate fluctuations, representing EUR 440 million. This impact mainly stemmed from the depreciation of the US and Canadian dollar against the euro.
 
Jean-Charles Pauze, Chairman and CEO of Rexel, made the following statement: 
'Up against a market downturn, and while pursuing its stringent reorganization program, Rexel achieved a robust commercial performance in 2003. As a result, after four semesters of declining operating profit margin, and in line with our objectives, Rexel expects this trend to be reversed in the second half of 2003.' 
 
Click to download the complete release with tables(.pdf - 52 Ko)Fourth quarter 2003 sales Sales at December 31, 2003
 

 
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