Gucci PPR says trading difficult in China

Performance reflects slower growth of other luxury brands such as Burberry and Louis Vuitton in key markets such as Asia. Hermes Outlet Online LVMH (LVMH.PA) Sales fashion and leather goods, Louis Vuitton, which makes up 75 percent saw comparable sales growth slowly returns to 5 percent in the third quarter from 8 percent in the second and 12 in three months. The results of the PPR follow profit warnings from Mulberry (MUL.L) and rival British Burberry (BRBY.L), which cemented the view that the boom is three years helped in the luxury market to the end. China - the strength of the main line luxury sector since the financial crisis of 2007/2008 - was to put a lid on luxury spending in recent months presented in response to the government crackdown on corruption and conspicuous consumption. In addition, Chinese consumers have found increased appetite for a smaller scale, centered logo on PPR Balenciaga and Yves Saint Laurent. ? We find that the taste of t under way to more complex products and the market is difficult, but we believe we have the right strategy for Gucci, "PPR Chief Financial Officer Jean-Marc Duplaix told analysts during a conference on China. "In the cities of level 1 (the most populous), the competition is tough, the most dynamic cities are level 2 (less populated)." Gucci's sales in China, which had registered a high double-digit growth in recent years has achieved? High single digits "in the third quarter of 2012, but were? About 10 percent" on the basis of nine months, he said, adding that he was confident, would improve Gucci margins this year. Sales of PPR Luxury rose by 12 percent to € 1.593 billion (1.27 billion euros), while consolidated sales rose by 6.6 percent to 2.561 billion total in the third quarter, a comparable basis. PPR is a global luxury LVMH and Richemont in third place behind Switzerland (CFR.VX). SALE REDCATS PPR, which does not give an accurate forecast for the year other than the increase in sales and profits, said the sale of the unit Redcats mail could take several months, and all options are open. Duplaix stated that the negotiations for the sale of the U.S. business Redcats were well developed and talking about their children and family began brands. PPR, which will focus on luxury and sports brands, has for the buyer for the brand Vertbaudet children and Cyril Redcats brand family as well as offices in the United States and its flagship search sale La Redoute mail. More tt PPR this month announced plans to spin off its books and CD cha? Has failed Fnac stores in 2013, a buyer for the company, which has been hammered by find music piracy and competition from online retailers. Duplaix said it through a stock distribution to shareholders whose details would be published in February listed. PPR shares, which have risen 20 percent so far this year, closed 1 percent to € 130.9.