PPR CFO says sourcing switch helping Redcats margin

PARIS, Jan 25 (Reuters) - A decision to increase sourcing of products in Asia is helping French retailer PPR improve gross operating margin at its Redcats mailorder division, Chief Financial Officer Jean-Francois Palus said on Thursday.

"More and more purchases are being made in Asia so the gross margin at Redcats is improving," Palus told a conference call with analysts on PPR's full year sales figures.

He said the group was also confident about improving margins in its Conforama furniture and home furnishing businesses due to more efficient sourcing.

"We think we will have more leeway to improve the gross margin" at Conforama, he said. Redcats accounted for 4.332 billion euros of total group sales of 17.931 billion euros in 2006. Conforama had sales of 3.275 billion euros.

Copyright © 2007 Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Reuters Limited

Copyright © 2007 Yahoo! Singapore Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy - Terms of Service - Community - Help