Global: PPR expects “better” sales in 2012

French luxury company PPR expects better earnings this year despite “an uncertain economic climate” in view of the 2.3% increase in its 2011 profits.

For the year ended Dec. 31, PPR post net income of 986.3 million euros (about $1.29 billion) from 964.5 billion euros in 2010. Revenue for the full year increased to 12.23 billion euros from 11.0 billion euros in the comparable period a year ago.

In the previous financial year, its luxury group, which includes Gucci, Bottega Veneta, Yves Saint Laurent, posted a 22.2% increase in sales, while the sport and lifestyle division, which includes Puma and Volcom, had a 10.5% increase.

In the meantime, PPR has been reorganizing to focus on luxurygoods and sports lifestyle brands, planning to sell off its Redcats online business and Fnac, an Italian electronics chain, where operating profits dropped 47%.

The Asia-Pacific region, excluding Japan, was one of the main contributors to these brands’ sales during the year, representing about 24.3% of the total. The company plans to open 43 Gucci stores this year, Bottega will open 22 and Yves Saint Laurent will open 15.