Photo: AP/Eugene Hoshiko
Luxury conglomerate, PPR, owner of brands like Gucci, Yves Saint Laurent and Bottega Veneta, saw massive sales growth in the division that sells its upscale products.But the clincher: That growth was fuelled by sales in Western Europe, which accounts for a third of the company’s overall revenues.
Click Here To See How Western Europe Is Spending On Luxury Goods >
Sales increased nearly 18 per cent on a comparable basis at the luxury unit, to €1.46 billion.
Gucci, the division’s largest contributor to revenue with 390 locations, saw euro-area sales top increases in North American and the Asia Pacific, gaining 10 per cent during the first three months of 2012.
“PPR delivered a highly satisfactory performance overall in the first quarter of 2012,” PPR Chief François-Henri Pinault said. “Our Luxury brands once again reported strong growth in all geographic areas, while our Sport & Lifestyle brands continued to move ahead.”
Even with austerity programs in place in Italy, the company said Gucci was able to drive single-digit growth on substantial demand.
The company, which is dwarfed by larger rival LVMH Moët Hennessy Louis Vuitton, broke out the individual contributors to its gains.
Overall sales at the company grew at an impressive pace, topping Wall Street consensus for $3.1 billion in revenue
But, Europeans seemed much less interested in middle-market sportswear. The company saw comp. sales decline at Puma.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.