PPR and Hugo Boss shake marketsWednesday, 09 November 2011
PPR, the owner of luxury houses such as Gucci and Bottega Veneta as well as Puma sportswear, is buying Brioni from the family that founded it in 1950. The company did not disclose a purchase price. A person close to the situation said PPR paid about EUR300 million, including Brioni's EUR90 million of debt. "Growth in the men's segment is significantly stronger than in women's," PPR Chief Executive Francois-Henri Pinault said. "We're strengthening our portfolio in areas where we think we have weaknesses." PPR’s shares upped by 0.13% by the close of markets.
Elsewhere and challenging the Eurozone’s crisis, German fashion house Hugo Boss AG sharply raised its earnings outlook for 2015 on Tuesday as it increases its network of stores and eyes strong growth in China.. The group said it now expects sales of 3 billion euros (2.5 billion pounds) in 2015 and core earnings of 750 million. That compares with previous targets of 2.5 billion in sales and 500 million in core earnings. "All of those driving elements we defined at the end of 2009 and the beginning of 2010 are playing out more strongly than we expected," Chief Executive Claus-Dietrich Lahrs told analysts at an investor day.
Nevertheless, seldom is the industry that manages to escape the European financial turmoil, as the FashionUnited Top 100, which closed down at 1,316.72 after dropping 3.97 points, showed Tuesday.