Is the economic downturn finally starting to permeate the luxury market? PPR yesterday announced that sales of Gucci's handbags and watches - it's Double G brand - had dropped by 3.3 per cent in the first three months of this year. On a like-for-like basis Gucci's sales did rise, but the 2.4 per cent increase was lower than predicted - and in a different league from last year's growth of 10.6 per cent. "In the first quarter, our markets have been less favourable, particularly in mature markets," said PPR's finance director Jean Francois Palus, as the figures were revealed.
While the high street has been fighting the credit crunch for months, luxury brands have, until now, remained relatively untouched; PPR's fellow power players, LVMH and Richemont, both recently said their sales were healthy. PPR's sales overall rose by 4.1 per cent. The downturn in mature markets is indicative of bonus cuts and redundancies in the City, The Evening Standard comments.
Source: vogue.co.uk
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