2004 Third Quarter Sales

Serge Weinberg, Chairman of the Pinault-Printemps-Redoute Management Board, declared: 'We posted a highly satisfactory third quarter. Our Luxury brands are growing steadily and the collections of the new designers have been well received. Our Retail brands have been gaining new market share for several quarters in most product categories, irrespective of economic trends. Quarter after quarter, our performance underscores the major growth potential of the 'New PPR'".
 
 
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in EUR million

Q3 2004

Q3 2003

Change

9 months 2004

9 months 2003

Change

 

Reported

Reported

Reported

Comparable*

Reported

Reported

Reported

Comparable*

Luxury Goods

641,0

583,7

+ 9.8%

+ 15.9%

1 977,7

1 865,6

+ 6.0%

+ 12.6%

Retail**

3 301,8

3 165,8

+ 4.3%

+ 3.9%

10 040,3

9 571,0

+ 4.9%

+ 5.4%

NEW PPR

3 942,8

3 749,5

+ 5.2%

+ 5.7%

12 018,0

11 436,6

+ 5.1%

+ 6.5%

Rexel

1 698,2

1 628,7

+ 4.3%

+ 6.4%

5 006,3

4 961,0

+ 0.9%

+ 4.4%

Disposals

-

-

-

-

0,0

1 268,8

-

-

(Inter-company sales)

(6.3)

(3.7)

-

-

(19.1)

(17.5)

-

-

TOTAL

5 634,7

5 374,5

+ 4.8%

+ 5.9%

17 005,2

17 648,9

- 3.6%

+ 5.9%

(*) On a comparable Group scope, exchange rate and trading day basis. 

(**) Apparel & Lifestyle division, Home and Leisure division, Kadéos and CFAO.
 
 
 
 

The Group and the 'New PPR'
 
 
·          Pinault-Printemps-Redoute: Group sales amounted to EUR 5,634.7 million in the third quarter of 2004, up 4.8% on a reported basis, despite a negative exchange rate impact of EUR 87.4 million. On a comparable basis in terms of structure, exchange rate and the number of days, sales rose steadily by 5.9%.
 
·          'New PPR': The Retail and Luxury Goods activities comprising the 'New PPR' published sales of EUR 3,942.8 million in the third quarter. The substantial growth on a comparable basis during the quarter (up 5.7%) reflects the strengthening of the Luxury Goods activities in the May to July period and confirms the strength of the competitive positions of the Retail brands in France and abroad.
 
 
 

 
 
Sales of the Retail activities grew by 3.9% on a comparable basis in the third quarter, despite the slowdown in household consumption, notably in September. Against this backdrop, the Home and Leisure division performed extremely well, posting sales growth of 4.2% in the quarter. The Apparel and Lifestyle division continued to hold up well with a 1.3% increase in sales.
 
In <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />France, sales of the Retail activities enjoyed fast-pace growth of 3.3% on a comparable basis. The brands once again confirmed their ability to gain market share irrespective of economic trends. International business was up 4.6% with increases of 2.7% in Europe outside France, 2.8% in the Americas, 4.4% in Asia Pacific and 10.9% in Africa.
 
The Retail division posted online sales of EUR 215.0 million in the third quarter, representing steady growth of 36.9% on a comparable basis. Internet sales over the nine-month period amounted to EUR 673.9 million, up 38.8%. Pinault-Printemps-Redoute continues the successful development of this distribution channel.
 
 
Home and Leisure division
 
 
·          Conforama
 
Sales amounted to EUR 786.2 million, up 4.2% on a reported basis and 2.9% on a comparable basis.
 
This increase reflects Conforama's strong performance in France, and on international markets, excluding Italy.
 
In France, sales are up 4%, thanks to new market share gains. Conforama continued to renovate its store network, in particular with the opening in September of the Malakoff store just outside of Paris, which strengthens the brand's presence on the Paris market.
 
Outside France, Conforama once again recorded sales growth in Switzerland (up 0.9%), Portugal (up 4.6%), Croatia (up 15%) and Spain (up 22.2%). The chain's twelfth Spanish store was opened in Seville in July. International sales, excluding Italy, rose 7.6% in the quarter. In Italy, the drop in reported sales  (- 4.6%) is mainly due lower apparel sales (- 9.7%), whilst furniture sales were up 7.4%.
 
Four new stores will be opened in the fourth quarter, including two in France, one in Spain and Conforama's first store under its own banner in Italy, outside of Milan.
 
 
·          Fnac
 
Sales totalled EUR 864.7 million, an increase of 7.5% on a reported basis and 5.4% on a comparable basis.
 
Stores in France recorded a 6.6% increase in sales on a reported basis and 4.3% growth on a comparable basis during the quarter, still driven by the sustained growth of technical products (up 7.6% on a reported basis), while sales of books and music were up 4.9% on a reported basis, thanks to the excellent performance of books and a 2.9% increase in CD / DVD sales.
 
Subsidiaries recorded a 1.4% rise, featuring strong growth by the Children's Division (up 15.3%) and ongoing buoyant growth of Fnac.com (up 47.9%). At Surcouf, the new management team, appointed at the end of July, is currently working on the adaptation of the product offer in stores and has just launched a new version of its web site, in order to boost sales at the main store in Paris and through the Internet.
 
Fnac continued its successful international expansion, recording growth of 10.6%. Excluding Belgium, which is facing fierce new competition, sales were up substantially in all countries - Portugal was up 8.2%, Spain 12.2%, Italy 23.3%, Switzerland 26.3% and Brazil 62.8%.
 
After opening its sixth store in Brazil in July, the brand opened in October a tenth store in Spain and will open two new stores in France - in Lorient and Perpignan - in the fourth quarter. A new Surcouf store will be opened on Boulevard Haussmann in Paris.
 
 
Apparel and Lifestyle division
 
 
·          Printemps
 
Sales amounted to EUR 195.4 million, up 4.5% on a reported basis and 2.6% on a comparable basis.
 
The Department Store business rose 4.2% on a reported basis and 2.3% on a comparable basis, driven by the growth of the Paris stores on Boulevard Haussmann. The Beauty department, up 20% on a reported basis in the quarter, Accessories (up 11.2% on a reported basis) and Women's Fashions (up 7.4% on a reported basis) were the strongest store segments, recording growth of 4.9% on a comparable basis. Sales generated by international customers, mainly from mainland China, Hong Kong and Japan, were up 31.7%.
 
The Sports division, consisting of Citadium and Made in Sport, posted growth of 3.3%, driven by the expansion of Made in Sport, which now operates 21 stores.
 
Sales by Madelios picked up considerably, rising by 20.5%.
 
 
·          Redcats
 
Sales amounted to EUR 974.8 million in the third quarter of 2004, the same level as in the corresponding period in 2003. This trend includes the negative impact of exchange rate fluctuations of 1.7%. On a comparable basis in terms of structure, exchange rate and number of days, Redcats' sales rose 0.9%. Excluding the Sears catalogues business in the United States, which will be discontinued as announced, Redcats posted growth of 1.3% in the quarter.
 
Sales in France rose 1.6% despite a sluggish apparel market in September due to mild weather conditions. For the ninth consecutive quarter, Redcats gained market share in mail-order sales in France and across the overall retail apparel market. In Europe outside France, sales rose 0.8%, driven by business growth in the United Kingdom and other countries, notably Spain, Switzerland and Austria. In the United States, activity excluding Sears was up 1.6%, thanks to the strong performance of Lane Bryant, Lerner and Jessica London. Repositioning efforts continue at Chadwick in the 'Misses' category and at Roaman's in the 'Special Sizes' segment.
 
La Redoute recorded a 3% increase in sales in the quarter, with a 2.3% increase in its mail-order business in France and a 6.6% increase outside France, driven by very steady growth in Spain, Switzerland, Sweden and the United States. Specialised catalogues had more mixed results during the quarter, with a 4.4% increase in the Children and Family division and a 5.3% drop in the Senior division.
 
The Internet channel confirmed its strength, with 38.3% growth during the quarter and the outstanding success of online sales in France, up 80%. Online sales totalled EUR 179.5 million or 18.8% of mail-order sales.
 
 
·          CFAO
 
CFAO sales totalled EUR 461.6 million, up 7.7% on a reported basis and 10% on a comparable basis, due to development in automobile and pharmaceutical distribution.
 
The automobile distribution business was up 17.6%, mainly driven by sustained growth in the French overseas departments and territories and East Africa and very strong sales growth in Mediterranean Africa.
 
The pharmaceutical distribution business grew by 7.8%, both in French overseas departments and territories (6.6%) and Africa (9.4%), where CFAO enjoyed a substantial rise in sales in East Africa and Egypt.
 
The New Technologies business fell by 6.8%. The comparison with the previous period is made difficult by one-off contracts in 2003. Excluding these contracts, business grew by 24%.
 
 
 

 
Luxury sales in the third quarter correspond to sales by Gucci Group from May to July 2004.
 
Luxury sales amounted to EUR 641 million in the third quarter of 2004, up 9.8% on a reported basis and 15.9% on a comparable basis.
 
This very strong growth is due to the success of the main brands - Gucci (up 16.4%), Yves Saint Laurent (up 22.5%), YSL Beauté (up 9.7%) and Bottega Veneta (up 76.6%). The other Luxury brands continued their development.
 
Business stepped up considerably in the United States (up 18%), and even more in Asia excluding Japan (up 30.5%). Business continued to grow in Europe (up 13.8%), after an increase of 6.5% in the previous quarter. Luxury sales rose 6.5% in Japan despite a challenging market.
 
Business grew in nearly all product categories. Leather goods sales, which accounted for 36.5% of total Luxury product categories, rose 23.9%, driven by Gucci, Yves Saint Laurent and Bottega Veneta. Ready-to-wear apparel is on track with an increase of 15.6%. There was a marked improvement in activity for timepieces, up 21.2%, cosmetics, up 13.9%, and beauty care up 16.7%.
 
Gucci Group recorded double-digit growth of its estimated sales for a period August - September 2004 against an already stronger sales trends for the same period of 2003.
 
The new collections received a positive and very encouraging welcome from trade buyers. To date, third-party initial orders on the "Cruise" and "2005 Spring-Summer" collections for the main brands rose in excess of 10%. At YSL Beauté, orders for "Cinéma" the new Yves Saint Laurent women's fragrance, which has just been launched, are particularly encouraging.
 
 
·          Gucci
 
Gucci sales totalled EUR 392.8 million, an increase of 8.6% on a reported basis, or 16.4% on a comparable basis.
 
Pro-forma retail sales rose 15.3%, driven by sustained growth in the United States (up 14.7%), and an even sharper rise in Asia excluding Japan (up 36.0%). Europe was up 23.1%, confirming its strong performance in the previous quarter. After opening a store in the Galleria in Milan and a new store in Taiwan, Gucci had a total of 192 directly-operated stores as of the end of July.
 
Third party sales, up 20.4%, benefited from the recovery in international tourism, mainly reflected in sales growth in duty-free shops (up 26.9%) and department stores (up 20.7%).
 
All categories grew sharply this quarter, reflecting the commercial success of Spring-Summer collection as well as early deliveries of some products in the Fall-Winter collection, in particular the new handbag lines, "Eclipse" and "Abbey". Retail sales of leather goods (up 19.2%) and shoes (up 10.8%) continued to grow sharply. Third party sales of timepieces firmed up substantially, with a 23.5% increase in sales in the third quarter.
 
In terms of total sales, the Gucci business grew sharply in the United States (up 16.8%) and in Europe (up 23.6%), where the brand is successfully developing a local customer base. Growth in Asia, excluding Japan, up 25.8%, was fuelled by strong growth in Hong Kong (+52.2%), South Korea (+12.2%), Taiwan (+64.6%) and mainland China (+58.6%). Asia excluding Japan, which now has 37 stores, accounts for 20.8% of total brand sales. In Japan, sales are up 0.7%.
 
 
·          Yves Saint Laurent
 
Sales totalled EUR 42.2 million in the third quarter, an increase of 18.6% on a reported basis and 22.5% on a comparable basis.
 
This steady growth confirms and enhances the trend recorded in the previous quarter. It mainly reflects the substantial increase in retail sales, up 54.5% to EUR 27.1 million. Yves Saint Laurent had 61 directly-operated stores as of the end of July.
 
All product categories recorded sharp increases in sales. Retail sales of leather goods, up 65.5%, were mainly driven by the successful new 'Halekulani' and 'Saint Tropez patchwork' lines of handbags. The early fall collection was warmly welcomed, contributing to the 43.7% increase in ready-to-wear retail sales over the quarter.
 
Yves Saint Laurent continues to expand in Europe, up 10.1%, and the United States, up 11.7%. Growth proved especially strong in Japan, with a 51.3% increase, driven by the successful development of leather goods.
 
 
·          YSL Beauté
 
YSL Beauté generated sales of EUR 123.7 million in the third quarter, representing a rise of 6.7% on a reported basis and 9.7% on a comparable basis.
 
This good performance is due to the dynamism of the Yves Saint Laurent brand (66% of sales) with sales up 11.4% at constant exchange rates. This growth mainly stems from the good results recorded in make-up and skin care product lines (up 13.9% and 16.7% at constant rates, respectively).
 
Among other brands, it is worth mentioning the new fragrance "Rosamor" by Oscar de la Renta, exceeding expectations, and the still very successful fragrance 'Trouble' by Boucheron, launched in the first quarter, as well as "Stella" by Stella McCartney, the sales of which are well above objectives.
 
Sales growth was particularly strong in Asia excluding Japan (up 45.1%), Japan (up 14.9%) and the United States (up 17.8%). Growth remains more modest in Europe, as for the market as a whole.
 
 
·          Bottega Veneta
 
With growth in reported sales of 64.2% and comparable sales of 76.6%, Bottega Veneta posted another spectacular increase in sales.
 
Retail sales, up 67.6% on a comparable basis over the quarter, accounted for 82.8% of the brand's total business. Sales to third parties more than doubled in the period.
Leather goods items continued to drive sales growth, with an 88.1% increase in total sales during the quarter, including a 77.6% increase in Retail sales. Leather goods accounted for 84.8% of total sales. The other categories (shoes, ready-to-wear) continued to develop steadily.
 
Sales rose sharply in all geographic regions - Japan was up 47.1%, the United States 60.5%, Europe  101.7%, and Asia-Pacific 157.5%. On July 9, 2004, the brand opened its flagship store on Fifth Avenue in New York.
 
 
·          Other Brands
 
Other brands include Sergio Rossi, Boucheron, Bédat & Co, and designer brands Alexander McQueen, Stella McCartney and Balenciaga.
 
Total sales by these brands amounted to EUR 57.4 million - up 3.8% on a reported basis and 6% on a comparable basis. This increase reflects the performance of Bédat & Co and the designer brands, which are expanding rapidly in contrast with Boucheron, with sales reflecting the current brand repositioning, and Sergio Rossi, whose strong retail sales partly offset the drop in sales to third parties.
 
 

 
 
Rexel consolidated sales amounted to €1,698 million in the third quarter of 2004, up 6.4% on a comparable basis. Taking into account the negative impact of changes in the scope of consolidation mainly due to the disposal of Gardiner and of foreign currency fluctuations primarily related to the depreciation of the US dollar against the euro, reported sales rose 4.3% in the third quarter.
 
 

In € million

Q3 2004
 

'04/'03
% change

9 months to 
Sept. 30, '04

'04/'03
% change

Europe

923

+4.2%

2,784

+2.7%

France

454

+3.8%

1,423

+3.2%

Rest of Europe

469

+4.7%

1,361

+2.2%

 

 

 

 

 

America

639

+8.9%

1,833

+6.2%

Of which:         - US

426

+10.8%

1,241

+7.4%

- Canada

196

+5.4%

544

+3.8%

 

 

 

 

 

Asia-Pacific

136

+9.4%

389

+8.2%

 

 

 

 

 

TOTAL

1,698

+6.4%

5,006

+4.4%
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
Jean-Charles Pauze, Rexel CEO, noted in particular:
 
"Growth in comparable sales for full year 2004 should exceed the level achieved in the first nine months of the year."
 
 
 
 
Download the complete press release(with tables) .pdf - 70 Ko 
 
 
 

 
 
 
CONTACTS
 
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