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PPR shares slump as earnings disappoint

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(Globalpost/GlobalPost)

Shares in French high-end retailer PPR slumped by more than 7 percent in early trading on Friday after investors were disappointed with the company's 1 percent increase in first quarter sales.

They recovered to later stand down 6.27 percent at 167.30 euros, still the biggest faller on the Paris CAC 40 which was off 0.54 percent.

"We feared being disappointed by the publication of the quarterly sales," said a Paris trader. "But the reality surpasses fiction, and by far."

Sales in the January to March period rose to 2.36 billion euros, a rise of 1 percent overall and 3.1 percent rise in like-to-like sales, the company said. Analysts polled by Dow Jones Newswires had forecast a 5.1 percent gain.

Gross luxury division sales grew by 4.5 percent in the first quarter while sales in the sport and lifestyle division shrank by 4.9 percent.

In March, PPR, originally known as Pinault Printemps Redoute, announced it was shedding its image as a distribution conglomerate to push its global brands, and will change its name to Kering in June.

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http://www.globalpost.com/dispatch/news/afp/130426/ppr-shares-slump-earnings-disappoint