High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email to buy additional rights. the French retail and luxurygoods group, helped trigger a rally throughout the luxury goods sector this week.PPR was among the biggest risers in Paris, gaining 8.2 per cent to
127.25 after its first-quarter results came in above expectations, with a 17.8 per cent jump in sales in its profitable luxury division.Eva Quiroga, analyst at UBS, said: “[PPR’s] luxury numbers were exceptionally strong. The fact that Gucci had nice double digitgrowth in PPR’s results went down really well – as did the impressive growth at Bottega Veneta and YSL.”PPR’s results sparked gains across the sector. Hermès International rallied 5.5 per cent to
266.55, while in Milan, SalvatoreFerragamo, the Italian luxury goods manufacturer, jumped 12.8 per cent to 17.35 over the weekCredit Suisse was one of a number of brokers to increase its target price on the stock following the results, raising it to 180 from 155.Arndt Ellinghorst, an analyst at Credit Suisse, said: “Investor focus seems to be on one-time costs, potential efficiency gains and other special issues in Volkswagen. In our view this overshadows the simple fact that Volkswagen is selling more cars[and] growing more strongly than we [and] consensus expected.”Volkswagen’s peer Renault ended the week up 0.6 per cent at 35.68, after a slump in European sales in its latest resultsweighed on the stock. Shares in the French car company have fallen by almost a fifth from their 2012 peak.
127.25 after its first-quarter results came in above expectations, with a 17.8 per cent jump in sales in its profitable luxury division.Eva Quiroga, analyst at UBS, said: “[PPR’s] luxury numbers were exceptionally strong. The fact that Gucci had nice double digitgrowth in PPR’s results went down really well – as did the impressive growth at Bottega Veneta and YSL.”PPR’s results sparked gains across the sector. Hermès International rallied 5.5 per cent to
266.55, while in Milan, SalvatoreFerragamo, the Italian luxury goods manufacturer, jumped 12.8 per cent to 17.35 over the weekCredit Suisse was one of a number of brokers to increase its target price on the stock following the results, raising it to 180 from 155.Arndt Ellinghorst, an analyst at Credit Suisse, said: “Investor focus seems to be on one-time costs, potential efficiency gains and other special issues in Volkswagen. In our view this overshadows the simple fact that Volkswagen is selling more cars[and] growing more strongly than we [and] consensus expected.”Volkswagen’s peer Renault ended the week up 0.6 per cent at 35.68, after a slump in European sales in its latest resultsweighed on the stock. Shares in the French car company have fallen by almost a fifth from their 2012 peak.
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