A good resistance however but has a cost

The recovery Instead of the politicians who want much to see here or the macroeconomic signs of embellished relative, Philippe Houzé, President of the Executive Board of the Galeries Lafayette Group that collects rather than a decrease in consumption in France.

In the margins of the presentation of the annual results of the Group of stores (Galeries Lafayette and BHV), downtown stores (Monoprix, owned 50-50 with the Casino Group) and consumer credit (LaSer, 50-50 with BNP Paribas subsidiary) in 2008, he commented the digits of its distribution of the group in the first quarter. "At end of March, our turnover is in withdrawal of 0.4, slightly below our budget," said Philippe Houzé, with Galeries Lafayette 2, Monoprix to 1, Europaquartz and Louis Pion (watchmaking) stagnation and the BHV fell by 4.6. For the month of April, he was saved at the Galeries Lafayette by the week of "floating" balances which "have earned 5 points of sales growth."

However, boss of the family group, if up to now, it could be said that household consumption had signs of weakness suggest she settled in turn in the crisis. However, the second part of the year gives hope more flattering comparisons, the first signs of slowdown dating back to last summer. In total, Philippe Houzé table on slight growth in the turnover of the group. Advocates for the opening of Sunday, boulevard Haussmann in Paris, which would create, he said 300 to 400 jobs part-time (three days paid five), and would provide 100 million euros of additional sales.

Pressure on margins

In the past year, the President of the Executive Board summarized thus: "we found a continuing deterioration of the situation after a good first quarter, a second way, a third lackluster and finally a bad fourth quarter." Turnover excluding taxes in the Group nevertheless grew by 1.9 to 5.05 billion EUR, for TTC sales at retail for $ 5.1 billion ( 1.6). A good resistance, however, but has a cost. The operating margin thus rose in a year of 8.72 to 8.18, while operating income current enrolled in withdrawal from 4.4 to 413,4 million. The current net result share of the group, he settled at 245 million, down 4.

This trend should not be reversed for the current year, while expenses increased slightly faster than the activity, and pressure on margins rises to get this in which the weight of sales on sale and sales promotion increases.

For 2009, the priority objectives are to strengthen the financial structure sound with a ratio of net debt on 50 own funds, but that could be hurt by the reduction of deadlines for payment to improve the generation of cash, so including to alleviate the debt of the parent company Mottier, 100 since the resumption of the balance of the participation of BNP Paribas owned family holding, and to enhance the commercial differentiation of its brands, while selective investments.

The Group has provided an envelope of almost identical to that of 2008 (unspecified), but will be vigilant in its choice. Indeed, it must prepare a substantial loan due in 2010.