PPR's Gucci said, trade is intensifying in China

Italian fashion brand Gucci, owned by French group PPR, said the store has become more intense, fierce competition in China's major cities.

Gucci, Replica Louis Vuitton, the second in the world behind the luxury brand sales, confirming a slowdown in the luxury goods industry, sales growth slowed to 7% in the third quarter, 10%, and the second and the first 12% .

Its performance, reflecting the slowdown in other major luxury brands such as Burberry and Louis Vuitton growth in Asia and other major markets.

LVMH (LVMH.PA), fashion and leather goods sales, including Louis Vuitton, saw sales growth rate of 75% in the third quarter fell 5%, 8%, in the second and 12% in the past three months.

PPR's results are as follows the the profit warning Sankey (MUL.L) and larger British rival Burberry (BRBY.L), which helps to consolidate the three years in the luxury market prosperity is coming to an end.

China - a luxury, since the financial crisis of 2007/2008 the main driving force - hat luxury consumption, in recent months, in response to the government to fight corruption and spend.

In addition, Chinese consumers are fostering a new-found appetite for high profile, logo-centric brands such as PPR's Balenciaga and Yves Saint Laurent.

"We see the flavor will become more complex products and the market is tough, but we believe this is the right strategy, Gucci, PPR Chief Financial Officer Jean - told analysts Mark Duplaix from China on a conference call.

1 (the most populous) cities, the competition is quite tough, vibrant city 2 (small population). "

The third quarter of Gucci's sales in China, a good double-digit growth in recent years has been to "high single digits" in 2012, but more than 10%, nine months, he said, and added that he is confident Gucci replica handbags margins will improve this year.

PPR-scale luxury sales grew 12% to 159.3 million euros, the euro, the Group's net sales of $ 256.1 million in the third quarter, an increase of 6.6% on a comparable basis.

PPR LVMH Group is the world's third-largest luxury goods behind Swiss Richemont (CFR.VX).

Redcats sales

PPR, does not provide exact guidance throughout the year outside sales and profits, to sell its Redcats mail order business units need to be a few months time, and that all options remain open.

Duplaix American Redcats negotiations of the disposal operation is a very advanced stage, children's and family brands have begun to negotiations.

PPR, I hope to focus on luxury and sports brands, has been looking for buyers, Redcats brand Vertbaudet children and families, as well as brand Xili DeGeneres's U.S. operations, its the flagship mail order company La Redoute.

Earlier this month, PPR revealed plans to spin-off its 2013 CD and book retail chain FNAC, because it does not find a buyer of the business has been finalized music piracy and competition in the online store.

Duplaix said, it will be through the listing of the shares distributed to shareholders, the details announced in February.

PPR shares, which have risen 20% so far this year, down 1% from the 130.9 euros.