10/24/2000 : 2000 Third Quarter Sales

Sustained organic growth
Strategic acquisitions in the Business-to-Business and Luxury Goods divisions
Internet sales 2.8 times higher than in the same period of 1999

 
(1) Sales for the nine months ended September 30, 2000 are presented in accordance with the new French accounting standards (the main change concerns the full consolidation of the Credit and Financial Services business)
(2) Luxury Goods sales correspond to Gucci Group sales for the period from November 1999 to July 2000.

Pinault-Printemps-Redoute's sales for the first nine months of 2000 rose by a strong 24.1% to EUR 17.1 billion (FRF 112.1 billion). The momentum enjoyed in the first half of the year continued in the third quarter, with all of the divisions achieving sustained organic growth, especially in international markets. Sales were further boosted by another round of acquisitions, mainly in the Business-to-Business and Luxury Goods divisions.
Sustained organic growth throughout the period
At comparable structure and exchange rate basis, sales for the first nine months of 2000 expanded by 7.8%. Excluding the impact of seasonal fluctuations in sales and year-on-year differences in the number of selling days, this growth was the same as for the first six months of the year, which stood at +8.1%. All divisions contributed to the comparable sales growth, with Retail sales up 8.2%, Credit and Financial Services revenue up 9.3%, Business-to-Business sales up 5% and Luxury Goods sales up 14.7%.

Strategic acquisitions in the Business-to-Business and Luxury Goods divisions
The difference between published sales (based on the new accounting standards applied as from 2000) and sales on a comparable structure and exchange rate basis, included the EUR 1,459.7 million (FRF 9,575 million) effect of changes in Group structure and the EUR 625.5 million (FRF 4,103 million) effect of changes in exchange rates.

Changes in Group structure correspond mainly to the consolidation of the Luxury Goods division built around Gucci, which includes Gucci, Yves Saint Laurent and Sergio Rossi, as well as newly-acquired Boucheron as from July 1, 2000. They also reflect the results of the Business-to-Business division's active policy of external growth, primarily at the level of Rexel.

Internet sales 2.8 times higher than in the first nine months of 1999
Internet division sales for the first nine months of 2000 totaled EUR 116.5 million (FRF 764 million), an increase of 176.8% compared with the same period of 1999. Redcats led the field, with a 633.3% surge in e-commerce sales, followed by Guilbert with 425% growth and Mobile Planet with 288.5% growth. Fnac.com confirmed its leadership in the sale of cultural products. At comparable structure and exchange rate basis, e-commerce sales rose fourfold, accounting for 0.7% of the Group's total sales for the first nine months of 2000 versus 0.3% in the year-earlier period.

RETAIL DIVISION
Retail division sales climbed 12.5% . This strong growth reflected and confirmed the acceleration in France of both Fnac and Conforama, with notably a 54% surge in PC sales for Fnac. Internationally, Fnac and Conforama recorded a strong performance, especially Fnac up 30%, while, in the Redcats subgroup, Brylane's operations in the United States and Redoute's international sales recovered momentum. Total Retail sales, including e-commerce, expanded 13.3%. Internet sales, multiplied by 5.7, were driven primarily by Redcats and Fnac. At comparable structure and exchange rate basis, sales growth (excluding Internet) came to 8.2% versus 4.2% in the first nine months of 1999
CREDIT AND FINANCIAL SERVICES DIVISION
Credit and Financial Services division revenue for the first nine months of 2000 totaled EUR 579.8 million (FRF 3,803 million), up 13.3%. Average interest-bearing consumer loans were 9.9% up on the same period of 1999. At comparable structure and exchange rate basis, growth was 9.3%


BUSINESS-TO-BUSINESS DIVISION
Business-to-Business sales surged 21.5% , reflecting strong organic growth and the contribution of newly-acquired businesses, mainly at Rexel. At comparable structure and exchange rate basis, sales rose 5% versus 2.6% in the first nine months of 1999.


LUXURY GOODS
Luxury Goods division sales for the period from November 1999 to July 2000 – corresponding to fourth quarter 1999 and first-half 2000 sales by the Gucci Group – were multiplied by 3.1. Gucci sales expanded significantly in all markets, testifying to the outstanding appeal of the product offer, the positive impact of the store modernization program and the global success of the Gucci brand. Sales of Gucci brand leather goods, ready-to-wear collections and jewelry were exceptionally strong. Published sales for the Gucci Group include Yves Saint Laurent and Sergio Rossi as from the fourth quarter of 1999 and Boucheron as from July 1, 2000. These businesses contributed USD 400.6 million to Gucci Group sales for the nine-month period. At comparable structure and exchange rate basis, sales rose 14.7%.



Contacts
Laetitia Olivier : + 33 (0) 1 44 90 63 80