PPR, the French luxury goods company that owns Gucci, Saint Laurent Paris, Stella McCartney and Alexander McQueen, has seen its shares rise more than 7 percent in Paris to their highest level in 12 years. PPR owner Francois Pinault commented hewas confident of "significantly improving our operating and financial performances in 2013".
"The results are a clear positive and it confirms that PPR is holding one of the most balanced brand portfolio in luxury, which is currently outperforming peers like LVMH," one Paris-based trader told Reuters.
The company pointed out that about 40 percent of its global sales now came from emerging markets.
The company is made up of two main types of business - luxury goods and sports and lifestyle brands. It owns 82 percent stake in Germany's sporting company Puma.
Puma's managing director, Jean-Francois Palus, said that Puma's recent performance was not in line with expectations and that they were working to turn around the business and resume growth. A new chief executive should be announced in the next few weeks.
On Thursday, Puma reported a 70 percent drop in profit to 70 million euros.
Asked about luxury trends in China, Mr Palus said that it was too early to tell whether last year's slowdown was over, but that initial signs were positive. Sales had picked up in the fourth quarter of 2012. He said the new leadership was likely to put in place measures to boost domestic consumption.
PPR is in the process of selling its mail order business Redcats. Having failed to sell its Fnac music and book business, it will now spin the retailer off as a separately listed company.
Image: PPR's Saint Laurent Paris