PPR thrives as luxury brands remain strong

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They helped PPR, the French group behind Gucci and designer brands Alexander McQueen, Stella McCartney and Yves Saint Laurent, to post an 11% rise in sales to 12.2 billion (£10.1 billion) in 2011. Profit after tax was up 2% at 986 million.

The strength of PPR's luxury brands offset weaker performance in some of its retail operations, such as the French music and games seller Fnac and catalogue group Redcats - which owns La Redoute.

PPR is in the process of jettisoning Redcats - it says several private equity buyers are interested - and plans to sell Fnac next.

Also today PPR set out plans for a new executive board which is to include Gucci boss Patrizio di Marco; Marco Bizzarri, chief executive of Bottega Veneta, and Puma boss Franz Koch.