- Language: English
- Published: November 2011
Summary: PPR S.A. Mar 09
- ID: 2054366
- March 2009
- Standard & Poors
The ratings on French diversified and luxury-goods retailer PPR S.A. reflect the group's leading and wide-ranging positions in luxury goods, nonfood retail, and, through 69%-owned Puma, mass-market goods. The group's ability to generate substantial free cash flow (FCF) also underpins the ratings. That said, the relatively high leverage of controlling holding Artemis is a constraint, negatively weighing on financial flexibility. We view PPR's diversification in nonfood retail, luxury goods, and sportswear as above average, but set to weaken in the future given the group's stated intention to focus on personal goods. We consider the group's luxury-goods division to be its most solid one, thanks to strong brand recognition, wide geographic coverage, and Gucci's high profitability. Emerging markets like China and...
Companies mentioned in this report are:
- Kering S.A.
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