France’s PPR said the group’s long transformation from a retail conglomerate to one focused on two core businesses of luxury and sports and lifestyle would be finished this year, as it reported a 28 per cent rise in 2012 net profit, driven by its luxury brands.

François-Henri Pinault, chairman and chief executive of the family- dominated group, which owns Gucci, Bottega Veneta and Puma, was upbeat on the outlook. The company would “continue significantly improving our operating and financial performances in 2013”, he said. However, the year will still be one of transition as PPR sells off the remainder of Recats, its catalogue business, and spins off Fnac, the music and book retailer, in June.

The group will also focus on improving the profitability of Puma, the German sportswear company. Puma’s new chief executive would be announced within several weeks, following the pending departure of Franz Koch. Mr Pinault added he would not make acquisitions in the still small sports and lifestyle business until the turnround at Puma was completed. – Copyright The Financial Times Limited 2013