UPDATE 2-PPR beats forecasts as consumer spending rebounds

* PPR Q2 sales 4.01 bln eur vs Rtrs poll avg 3.865 bln

* H2 EBIT 708 mln eur vs Rtrs poll avg 648 mln

* CEO says received "strong interest" for retail units

* Shares down 1 pct

(Adds detail, background, analysts'comments, CEO comments)

By Astrid Wendlandt, European Luxury Goods Correspondent

PARIS, July 30 (Reuters) - French retail and luxury group PPR (PRTP.PA) posted first-half results above forecasts on Friday, confirming a rebound in consumer spending at home and in the luxury goods sector worldwide.

The owner of fashion brands Gucci and Yves Saint Laurent said local buyers were opening up their wallets again, U.S. tourists were back in Europe and shoppers from emerging markets were continuing to add to the luxury recovery.

PPR's Fnac and Conforama retailers, which the group aims to spin off, enjoyed a pick-up in the second quarter as consumer confidence slowly returned in France, the company said.

Chief Executive Francois-Henri Pinault said he had received "strong expressions of interest" in PPR's retail units but reiterated that he would take his time to get a good price.

PPR's Gucci Group, which owns the Balenciaga and Stella McCartney brands, joined the lengthening roll-call of luxury companies with forecast-beating second-quarter figures. To date, they include market leader LVMH, Hermes (HRMS.PA) and Burberry (BRBY.L).

On Thursday German fashion house Hugo Boss (BOSG_p.DE) said it expected 2010 to be challenging in spite of the global luxury goods recovery as demand in Europe, where it makes the bulk of sales, remains subdued. [ID:nLDE66R24]

The latest sets of results cement the view that the luxury goods rebound, particularly strong for well-established and high-profile brands, is bigger than many investors expected several months ago.

After surprisingly strong first-quarter figures, many analysts were cautious not to read into them a genuine recovery, as part of the increase was due to retailers rebuilding stocks depleted by the downturn and not a reflection of end demand.

Second-quarter figures confirm the luxury industry is crawling out of its worst downturn in decades, and as a result many analysts have upgraded their forecasts for luxury goods stocks such as PPR, LVMH (LVMH.PA), Burberry and Hermes.

Looking ahead, however, PPR's Pinault said European's luxury appetite remained vulnerable to future tax hikes aimed at plugging budget holes and paying down debt.

"We are not shielded from new fiscal measures which might make consumers more cautious," Pinault said.

PPR shares, which have gained 21 percent since Jan. 1, were down 0.5 percent at 101.8 euros at 1152 GMT, while LVMH shares were up 1 percent, having gained 18 percent so far this year. Hermes shares were up 0.2 percent after rising 40 percent since the New Year while Burberry was down 0.5 percent.

LAGGING RIVALS

If Gucci Group sparkled with a 10.9 percent rise in comparable second-quarter sales that beat forecasts, its performance remained below that of its closest peers.

LVHM's fashion and leather goods sales rose 14 percent, Hermes' 20 percent and Burberry's 24 percent.

"Top line trends in luxury (of PPR) are generally less impressive than what some competitors have already disclosed," Kepler analysts said in a note.

Gucci Group owns several fast-growing, vibrant brands such as Balenciaga and Bottega Veneta but the bulk of revenue is still generated by the Gucci brand, whose image was tarnished by wholesaler discounts during the downturn.

By contrast, LVMH's Louis Vuitton never holds sales, and Hermes' sales remain largely symbolic and tightly controlled.

Overall, Gucci Group's total revenue reached 929 million euros ($1.21 billion), beating an average Reuters poll forecast of 888 million. Recurring operating profit reached 375 million above the poll average of 348 million.

Pinault said July figures looked promising.

"The numbers for July are in line with the second quarter in the retail and are improving in luxury and Puma," he said.

PPR owns around 70 percent of German sports goods company Puma (PUMG.DE), which posted first-half numbers below market expectations on Thursday and warned it might miss its full-year earnings target due to litigation in Spain. [ID:nLDE66R20Q]

PPR generated a first-half recurring operating profit (earnings before interest and tax) of 708 million euros, above the 648 million euro average in a Reuters poll of 12 analysts.

PPR took a scythe to its cost base over the past 18 months in response to the downturn and is now reaping the benefits with a recurring operating margin of 8.7 percent at the half-year, up from 7.5 percent a year ago.

The group did not give a guidance for the full-year. ($1=.7664 euros) (Editing by Geert De Clercq, Mike Nesbit)