third-largest luxury group behind LVMH

Louis Vuitton handbags outlet In addition, Chinese consumers have been cultivating a new-found appetite for less high-profile, logo-centric brands such as PPR's Balenciaga and Yves Saint Laurent."We see that the taste is going for more sophisticated products and the market is tougher but we believe we have the right strategy for Gucci," PPR CFO Jean-Marc Duplaix told analysts on a conference call about China."In Tier 1 (most populated) cities, the competition is quite fierce, the more dynamic cities are Tier 2 (less populated)."Gucci's sales in China, which had enjoyed high double-digit growth in recent years, reached "high single digits" in the third quarter of 2012 but were "above 10 percent" on a nine-month basis, he said, adding he was confident Gucci's margins would improve this year.

PPR's total luxury sales rose 12 percent to 1.593 billion euros ($2.06 billion), and overall group sales grew 6.6 percent to 2.561 billion in the third quarter on a comparable basis.PPR is the world's third-largest luxury group behind LVMH lv handbags outlet and Switzerland's Richemont.PPR, which did not give a precise forecast for the full year other than improved sales and profits, said the disposal of its Redcats mail order unit would take several months and all options remained open. Duplaix said talks regarding the disposal of Redcats' U.S. operations were well-advanced and discussions regarding its children's and family brands had started. PPR, which wants to focus on luxury and sports brands, has been looking for buyers for Redcats' children's brand Vertbaudet and family brand Cyrillus as well as U.S. operations and its flagship mail order company La Redoute.Earlier this month, PPR unveiled plans to spin-off its CDs and books retail chain Fnac in 2013, having failed to find a buyer for the business which has been hammered by music piracy and competition from online retailers.

Duplaix said it would be listed through a distribution of shares to shareholders, with details to be made public in February. PPR shares, which have gained 20 percent so far this year, closed down 1 percent at 130.9 euros.Italian fashion house Prada SpA dismissed talk of a sharp slowdown in spending on luxury goods, posting a 59.5 percent jump in net profit and saying its sales in the past two months were on track with expectations."I think we must stay calm and be less hysterical. I don't see such a dramatic market," said Patrizio Bertelli.

Chief executive of the maker of minimalist dresses which competes with the likes of Louis Vuitton and PPR SA's Gucci.His comments on an analyst conference call come after Britain's Burberry Group Plc said on Sept. 11 its sales growth in China was far slower than expected, spooking luxury investors and raising concerns that the entire sector was in danger of stumbling.

LV handbags China's luxury market, on which global luxury powerhouses have become increasingly dependant, has been hit by weaker demand than expected due to slowing growth and a crackdown by Beijing on conspicuous consumption. But Milan-based Prada, also popular for its colored Miu Miu dresses and leather handbags, said it expected "good double-digit growth" in 2012 at shops open more than a year.” Today, looking at numbers in August and September, we are convinced that we will meet the targets indicated in our budget," Bertelli said without giving details. Asked about Burberry, Bertelli declined to comment on its competitor, but said Prada benefited from a "flexible" offer which was responsive to conditions in its different markets.