According to an Associated Press article, Gucci delivered a "solid performance" with help from emerging markets, where sales of luxury goods rose 15 percent over six months.
Sadly, French luxury and retail group PPR SA, owner of the Gucci and Yves Saint Laurent brands, reported a 76 percent drop in earnings for the first-half, after sales fell at its Conforama furniture stores, FNAC books-to-electronics chain and Redcats catalog unit. However, PPR’s Chairman and CEO, Francois-Henri Pinault, said we are "satisfied with our performance to date. We are doing everything we can to ensure that the Group weathers the current developments and seizes opportunities as soon as the crisis subsides."
The good news for PPR was that sales rose 3.8 percent at German sportswear company Puma AG, which they own 64 percent of. And for the Gucci and Bottega Veneta brands, overall global sales increased by 8.3 percent and 2.7 percent respectively in the first half.
Due to these financial woes, PPR won’t be offering to bail out Prada any time soon. We read in a Reuters report that Prada’s bankers have offered Compagnie Financiere Richemont SA, owner of luxury brands like Cartier and Montblanc, a sizeable stake in the company. This is an unconfirmed report at the moment, but we’ll let you know the minute it becomes official.