PPR missed first-quarter sales forecasts, particularly for its Gucci fashion label and Puma sports brand, hit by sluggish trading in Europe and slower growth in China.
The French group, which also owns fashion houses Yves Saint Laurent and Bottega Veneta, said on Thursday it had not noticed any improvement in China, still the luxury industry’s main engine of growth despite a recent moderation in demand.
PPR’s comments echoed those from archrival LVMH, which pointed to slower sales growth in Europe and forecast little improvement in China in the near future. The latest raft of trading updates from listed luxury groups including Hermes indicate their brands in China have been hit hard by the government’s crackdown on conspicuous consumption and on the country’s gifts-for-favours custom.
(Source: CNBC)