PARIS Dec 14 France's PPR is
considering using cash from the sale of its retail assets to
invest in a new luxury goods brand, the Financial Times reported
"We have been talking about investing in a new luxury name,"
chief executive Francois-Henri Pinault said in an interview.
"We have no more young brands since Alexander McQueen and
Stella McCartney have all passed the 100 million euros mark," he
PPR's last acquisition in the luxury and ready-to-wear
sector was Italy's Brioni in 2011. PPR has said it is interested
in medium-sized, or 50-150 million euros, luxury brands to
complete its portfolio, but this is the first time it has
suggested it might consider building a new house, the paper
PPR is currently offloading its Redcats mail order unit in
pieces and has announced plans to spin off its FNAC music and
book unit, having sold its Conforama furniture arm last year.
Earlier this week PPR unveiled its first acquisition in
China - a majority stake in fine jeweller Qeelin - and said more
small deals could follow in the region, a key market for luxury
In the FT interview, Pinault dismissed the idea that slowing
growth in Chinese luxury consumption was a big problem for the
"This is completely schizophrenic," he said.
"If the U.S. grew at 5 percent a year we should be
celebrating. There would be no fiscal cliff. But China slows to
7 percent and is it a disaster? No. I have no worries at all
about its potential for development over the long term,"
(Reporting by Dominique Vidalon; Editing by Mark Potter)