[Foreign language]. Good morning. Welcome to the presentation of our annual results. I'm going to be running you through the main points in our 2011 results, and as you'll see, they're excellent. Before then, asking Jean François Palus to talk to us in greater detail about the financial statements. After that, we'll be looking toward the future, and that's when I'll take the floor again to talk to you about our current transformation and to talk to you about our outlook, and we're confident in 2012. Operating performance and financial performance in 2011, truly remarkable. I'd like to really underscore three indicators on that point. Firstly, I'll talk to you about our annual revenue, which is up more than 9% consolidated, which means including luxury, sports, and lifestyle divisions, as well as snack. Its activity has been negatively impacted by consumer developments in these markets.
We saw record growth of over 26% in our recurring net income, which means we're in the small number of companies that generate over one billion in net profits. Lastly, the third indicator I'd mention, yet again, we've reduced our net financial debt. At the end of the year, it was just 1.8x our EBITDA. Last year, we continued implementing our strategic change. In our area, we saw the arrival of groups such as Europe Ergo and Volcom, and at the end of the year, we acquired the Brioni brand. On this slide, you can see the main key figures from our luxury and sports lifestyle divisions. Activity here has benefited from market conditions, which were very positive.
The geographical footprint and especially the significant presence that we've built in recent years in many emerging countries have made it possible for them to really hold up well, sometimes during fairly tough times in terms of consumption in various markets. Therefore, all of our brands have shown great momentum for growth last year. I'd like to draw your attention to the high level of operating margin in both divisions, and especially the record level which we reached last year in the luxury division. Now, on the screen, you can see we're looking specifically at the breakdown of our annual revenues in luxury, sports, and lifestyle divisions, broken down by geographical location. In Japan, in spite of the tragic events that you're all familiar with, we did record remarkable growth in our revenue up the last year by 6%.
In each of the other geographical locations, we saw spectacular growth, double-digit. What I see is that we've got clear geographical diversification, which has been a real boost for our growth. We've made efforts to diversify. This led last year to a record opening in new stores, and of course, we've preferred the most buoyant regions, but this does not mean that we neglected the more established markets where our brands are growing very strongly. This year, we intend to continue expanding our entire retail network. This will be just as ambitious a project as last year's was. Those are my points by way of introduction. Now, I'd like to give the floor to Jean-François and ask him to run you through the financials for 2011 in detail.
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Ladies and gentlemen, good morning. As with every publication, you'll find all the detailed information in the financial document that you received on arrival. Let me remind you that my comments on revenue concern data on a like-for-like and same currency basis, and unless otherwise stated, the figures concern the activities currently being traded, excluding Redcats and Fnac Italy, in accordance with the treatment of this business under IFRS 5. As you'll have seen, our 2011 results are excellent. Group revenue has risen in excess of 9%, and current operating income is up 17%. In 2011, the operating margin of Kering has risen to a historic high of 13.1%. In the second half, the operating profitability of the group stands at 13.7%, reaching a record level of 20.2% for our luxury and sport and lifestyle divisions.
Before reviewing the operating performance of the luxury segment, let's talk about the high points of some of our brands last year.
Our luxury division recorded an excellent performance in 2011 with its revenue up by 22%. This strong momentum was confirmed in Q4 with a growth rate of close to 19% in 2011. Emerging markets, accounting for 38% of the division's business, saw sales increase by 30%. Asia-Pacific maintained a sustained growth rate, driven notably by Greater China, up 39%. The historic markets also reported a strong growth in business, up 18% on the year. Growth was strongest in North America, followed by Europe, whereas Japan returned to growth with a growth of 5% in Q4. In 2011, the luxury division once again significantly improved its operating income, reaching the record figure of EUR 1.3 billion, 34%. The operating profit margin is up 220 basis points. As you can see, from 2009- 2011, the profitability of our luxury division increased by 430 basis points.
The luxury division has maintained a sustained CapEx policy with a net opening of 117 stores in 2011 for a network of 801 outlets. At the end of the year in 2012, the luxury division is set to open some 110 stores. In 2011, Gucci celebrated its 90th anniversary with a record rate of increase in revenue, close to 19%. In Japan, Gucci sales rose 4% on the year. All the other regions reported double-digit growth, both on the year and in Q4. Emerging markets continued their sustained growth, up 25% on the year and 17% in Q4. Greater China accounts for 23% of total sales at the end of the year. Sales in Gucci-owned stores are sharply up on the year and in Q4. In 2011, store traffic increased as well as the average cost of sale because of an increased weight of the highest price segments.
All product categories report double-digit growth. This reflects the uninterrupted success of our permanent lines, as well as the considerable success of our seasonal new products. Gucci continued to optimize its distribution in order to enhance exclusivity of the brands. Full-price sales have increased substantially, whereas reduced prices have been sharply reduced. Gucci also limited the increase of its sales in fashion and leather goods to third-party distributors in Italy at the end of the year. In North America, Gucci continued to buy back its stores' store counters in major department stores. Last year, current operating income of Gucci reached a record level, close to EUR 950 million. Gucci in 2011 posted the highest operating margin of its history at 30.2% in 2011, up 180 basis points.
This increase is all the more remarkable if we consider the increase in operating costs in the context of the 90th anniversary and the opening of the Gucci Museum in Florence. Over three years, as you can see, the operating margin of Gucci is up close to 300 basis points, reflecting the relevance of the strategic initiatives put in place. In 2011, Gucci saw the net opening of 59 new outlets, bringing the number to 376 fully-owned stores. Operating investment up 26%. In 2012, the brand will open 45 stores, about 20 in Asia-Pacific outside Japan. Moving to Bottega Veneta, in 2012 posted a strong acceleration in revenue with an increase of 37% in the second half, after an increase of close to 30% in the first half.
In 2011, Bottega Veneta recorded impressive growth rates across all geographies, up 42% in Western Europe, over 28% in North America, up 52% in emerging markets, accounting now for 39% of total sales, with notably an increase of 76% in Greater China. In Japan, Bottega Veneta recorded a strong rebound in the second half, with a Q4 posting double-digit growth. The excellent momentum of the brand reflects the relevance of its positioning. Bottega Veneta thereby benefited both from the success of its iconic lines such as Veneta, the Caba, the Knot, but also new models and novel colors. In 2011, current operating income increased by 57%, reaching an historic high. The profit margin reaches a record level of 30%. That's an increase of 450 basis points over three years. The increase of the profit margin is even more impressive with the leap of 720 basis points.
During the year, Bottega Veneta continued its CapEx program, opening 22 outlets, and that pace should be maintained. In 2012, at the end of 2011, Bottega Veneta was operating a network of 170 retail stores, 29 in Greater China and 13 in the other emerging markets. In 2011, Yves Saint Laurent recorded excellent performance here again, with an acceleration in the second half, up 34% after an increase of 30% in H1. The sales of Yves Saint Laurent are up 45% in North America, 39% in Western Europe. Asia, excluding Japan, which accounted for 16% of sales at the end of 2011, is up 46%, and Japan has returned to double-digit growth in Q4. This strong growth in the business demonstrates the success of the collections of Yves Saint Laurent, in particular shoes, representing 25% of sales with extraordinary increase.
Operating income of Yves Saint Laurent stands at over EUR 40 million, with, for the first time in the brand's history, markedly positive income for the couture activity. We're extremely satisfied with this remarkable improvement of EUR 32 million of the earnings of the couture business. In 2011, Yves Saint Laurent continued to optimize its network of retail outlets by opening nine stores: four in Asia-Pacific, excluding Japan, and shutting down four units in mature markets. At the end of the year, Yves Saint Laurent operated 83 retail stores, nine in Greater China and 18 in the other emerging markets. In 2012, Yves Saint Laurent is set to open some 15 additional stores. A few words on the other brands of the luxury division, posting a 24% increase in revenue in 2011.
Balenciaga maintained a sustained rate of growth across its market, fueled by the success of its collections and the relevance of its expansion strategy. Alexander McQueen benefited from extraordinary media presence last year and posted a very strong increase in revenue. Stella McCartney also reported across country a high growth in revenue, both in retail stores as well as third-party distributors. Current operating income of our other luxury brands is up 47% in 2011, driven by the strong improvements in the results of Balenciaga, Alexander McQueen, Stella McCartney, and Boucheron. The operating margin is up 100 basis points last year and in excess of 400 basis points over three years. Let's now move to the sport and lifestyle division, which was formed last year with the integration on July 1 of Volcom at the site of Puma. Let's take a look at a brief film that illustrates the life of these brands in 2011.
Pardon, I'd like to show you some images of the team.
We could have showed you a few pictures of the Irish rugby team. That's missing, but next time ahead. Sport and Lifestyle division sales are up 11% on a like-for-like basis. The performance of the division, particularly satisfactory at the end of the year. Sales growth up 13% in Q4. A few words on Puma, which in 2011 reached its target of EUR 3 billion in revenue, particularly good momentum in Q4. This performance is the result of a sustained level of innovation and creativity, as well as marketing innovations aimed at reboosting the product offering and appeal to new customers. The new brand collections were very well received throughout the world. Puma recorded a very good increase of its Lifestyle, fundamental mechanical sports segments. The running segment also posted strong growth thanks to the new model, Puma Agility, as well as the Fast collection.
The fitness segment, with a line Body Train as well as Golf, which benefited fully from the strengthening of Cobra, also recorded strong growth rates. Current operating income of Puma dipped slightly in 2011, in accordance with what was planned back on the attack plan, planning to invest significantly in order to allow for the future expansion of the brand. If the dip in gross margin was contained, operating costs are up 16% on a like-for-like basis. Puma has expanded CapEx to boost the appeal of its brand and fueled its commercial trend, sponsoring marketing expenses, but also design and R&D are significantly up. Since the 1st of July last, we're successfully undertaking the integration of Volcom in the Sport and Lifestyle division. Over six months, Volcom saw its revenue rise 8%, with a Q4 up by close to 10%.
Growth was sustained across areas and emerging markets, reporting a 16% increase. Also, sustained dynamism in textiles, apparel, and sales of accessories, driven by the Electric brand, whose revenue is sharply up. In 2011, Volcom contributed to current operating income of PPR to the tune of EUR 14 million. The operating performance was adversely affected by the accounting statements of the price of the acquisition of shares. After the activities of PPR, let's now turn to flag. The year 2011 was marked by a sharp deterioration in the consumer context and markets for flag clothes in France as in Southern Europe. In this challenging environment, the brand continued to open its stores and gain market share. In 2011, internet sales, which is a profitable channel for Fnac, are up close to 18%.
The weight of sales on internet stands at 11% for Fnac as a whole and close to 13% for France. The profitability of the brand was affected by a dip in store sales and the startup costs for recent stores and new concepts, as well as CapEx aimed at developing the internet channel. Gross margin was maintained, and on a similar number of stores basis, operating costs declined. The implementation of the Flag 2015 plan has started by redeploying the network of stores, renewing the store concept, opening of a child universe in each store, and the integration of the internet offering and store offering, as well as new service offerings in parallel. Fnac is rolling out a competitiveness plan aimed at generating EUR 80 million in savings in a full year. This plan includes savings on SG&A, as well as payroll. A few words now about our excellent financial results.
The other costs, non-current costs and income, concern restructuring costs for EUR 24 million and asset impairment EUR 16 million. The financial expense of the group has improved by 2011, particularly a 6% drop in the cost of debt because of the drop in the average cost of debt of the group and very good financing terms. The effective tax rate stands at 23.9% in 2011, improved by 280 basis points thanks to a reduction in the negative impact of non-recurring items, which in 2010 generated an important expense without tax savings. Restated for this impact, the current rate of tax is almost stable at 23%. In 2011, the results of companies that equity includes, for a large part, the contribution of CFAO. The results of discontinued activities include, in 2011, the losses linked to the restructuring, discontinued activities of Avenue and Fnac Italy.
It also includes the contribution of Redcats, whose revenue dipped by 2% in 2011, posting current operating income of EUR 116 million for EBITDA at EUR 153 million. For information, in 2010, the proceeds of discontinued activities were largely linked to the capital gains on the sale of Conforama shares. Net income group share of continuing activities, excluding non-current items, is up 26%, standing at a record number of EUR 1.1 billion, a record for PPR. Net earnings per share is up 3%, excluding non-current items. Net earnings per share of current activities stands at EUR 8.36, up 27% over the previous years. Free operating cash flow stands at EUR 934 million, slightly up over 2010.
The strong increase in our cash flow from operations was offset by the marked increase in tax paid, notably at Puma, as well as by the significant increase in the change in working capital requirement linked, on the one hand, to inventory increases aimed at sustaining the growth of luxury sport and lifestyle brands, and on the other hand, to the decline of receivables from Snack that has reduced its purchasing. Furthermore, investment operations of the group rose 16% in 2011. At the end of 2011, net financial debt of the group stands at less than EUR 3.4 billion. That's a reduction of close to 10% over the last year. 2011 acquisitions and sale of stock included the cash from the sale of Conforama shares in March, as well as disbursements in respect of the acquisitions of Volcom and So Wind.
PPR enjoys a very comfortable liquidity position, and its net debt to EBITDA ratio has improved further at 1.8. Let me conclude a word on the dividend. During the year, we bought in excess of 1 million PPR shares, and the board will submit to the approval of the shareholders' meeting on the 27th of April next, the payment of a dividend of €3.50 per share. This reflects PPR result to maintain well-balanced payout ratios in respect to the recurring net income of the group and furthermore to the available cash flow for 2011. Thank you for your attention.
You saw now that 2011 was excellent, especially for our luxury and sports lifestyle activities. We intend to very much build our future on those activities, as you know. Before talking to you more specifically about the points of our strategy, I would like to very warmly thank all the members of the group and all of our brands and brand names worldwide in France and elsewhere who are the guarantors of our group's performance, as the brief video just showed us. PPR is moving on to the next stage, and that involves everyone. That means everybody has to be very involved. Let's come back now to talk about how our group has changed and our ambition, what our group intends to do, which is underpinning this change.
PPR is going to be bringing forward all of its brands so that they can really achieve all their organic growth that they're capable of. We're working in a consistent consumer area, apparel and accessories, and we know there's a great deal of potential for growth here. We are exclusive brands with our presence in the most dynamic areas of these sectors, i.e., luxury and sports and lifestyle. We know that this segment has structural, sociological, and demographic trends. We see the emergence of new markets and new consumer aspirations in those markets. Here we can see a good illustration of the consistency of the consumer area where we're active. We can see the various product categories. Beyond geographical distribution of our sales, which I talked to you about during my introduction earlier, we've got a good balance in terms of product category, which further strengthens our growth profile.
Our two divisions are active in neighboring product categories. Thanks to this consistency, henceforth, we can really pull together our group's know-how and use that know-how for all of the group's activities, which means we can step up synergy within all of our divisions. More and more, we'll be able to use the complementarity between the two divisions by pooling some functions, and I'll be talking to you in a few moments about this and give you a couple of examples. To achieve this vision and really release all the potential of our brands, PPR has some unique assets. We know our main assets are our brands. They're recognized worldwide. They're powerful. They're strong. They're desired, and they're complementary brands. Our job precisely will be to really help this wonderful asset base of ours flourish. We're still a young group which just reached its current configuration in a recent past.
Nevertheless, our corporate culture is very strong. It's been developed now for 50 years. It's based on the values of entrepreneurship. All of our employees feel that they're entrepreneurs worldwide. Furthermore, our strength comes from the fact that we control the whole value chain. All of our brands design and develop their products and control the right adaptable, flexible production system, which they either own or share with the best possible partners. As you know very well, we jealously protect the image of all of our brands. Lastly, through all of our activities, we adhere to stringent financial discipline. At the same time, we're constantly seeking operational excellence. Regardless of their size, our brands have the right systems and processes that they can only get through a major group.
I'd also like to add these four points are fundamental not only to develop our brands but also to attract new brands. We have a combination here that's unparalleled. Our entrepreneurial corporate culture is the driving force in the whole process of transformation, which has meant greater empowerment for brands and group employees. People are very interested in being able to actually achieve concrete things. They're very bold, and they show great imagination. These are the main principles, and that's how we've transformed the way we're organized. We adhere to those principles in the last 12 months. In one single and most importantly simplified structure, we brought together the Gucci group and PPR corporate teams so they could bring the brands together and help them work better together.
We've also changed the makeup of our Executive Committee, bringing in the main functional managers as well as the operational managers, so the managers of the main brands. I'd like to greet the new members this morning: Patrizio Di Marco, the Gucci CEO; Marco Bizzarri, the Bottega Veneta CEO; and Franz Koch, where's Franz? He is CEO of Puma. Of course, they're here this morning, and together with me, they'll field your questions. Lastly, we've also created PPR Asia-Pacific and PPR Americas so that we can bring our functional expertise really out into the field to underpin our brands' development. I've asked Jean-François Palus to manage this group transformation. At my side, he can spend more resources on brand development support, brand building. Jean-Marc Duplaix, who so far was Deputy CFO of the M6 Group, came on board at the end of January as PPR CFO.
This is Jean-Marc, and it will be your pleasure to work with him in the very near future.
Now, there's an imperative that governs everything we do. We want to make it possible for our brands to really achieve their potential and help contribute added value to what they do. What does that boil down to? The group's brands really can use a platform of resources and expertise. That's our strength. That's the PPR effect. We're pooling resources, making them available to our brands. This entails tangible synergy as well as complementarities that may be more intangible but are equally real. Let me give you a couple of examples of recent developments that we've been working on. Let's talk about Brioni. You can see how elegant we have become now thanks to Brioni.
Through its integration, Brioni is going to benefit from the international distribution and logistics hub, which is in Gatopino. It's already being used by most of our luxury brands. This will mean they'll be able to step up their development and all the while control their costs. Volcom. Very quickly, Volcom, together with Puma, in the few months after its arrival in our group last July, continued working on developing a range of shoes. Of course, they're in step with their own identity, and they're using the know-how of one of the biggest, the greatest sneaker producers worldwide and their great expertise, which is Puma. I was in Asia a couple of weeks ago negotiating with some shopping mall owners, and I used all of our group's clout to get the best locations for our outlets and our brands.
PPR is coordinating and speeding up e-business projects for all of our brands. We're establishing a pool of key skills that we can use and share best digital practices and further increase our internet penetration for all of our group's activities. I've talked to you about our vision statement. I've talked to you about the assets we have to bring this vision forward. I've given you clear illustrations of the PPR effect, i.e., our ability to tap into potential organic growth in all of our brands. Now, I'd like to talk to you about the future and talk to you about the reasons why we're fundamentally optimistic when we look towards the future and the development of this group. First of all, regarding the luxury division, we've got growth factors and further improvement in our profitability profile.
This is due to the exceptional quality of our products, the talent of our creative teams, our marketing teams, our merchandising sales teams, and this is also thanks to the very, very strict control we use for our distribution network and our communications policy. All of our brands have tremendous potential for organic growth. We've seen remarkable performance at Yves Laurent and Bottega Veneta in 2011, just two examples. This just goes to show how desirable these brands are, and it goes to show PPR ability to reconcile growth and exclusivity, innovation, and respect for the identity of each brand. Regarding Gucci, in 2011, they saw a record performance, best in the last 10 years, both in terms of growth and revenue as well as operating margin. Recent acquisitions further strengthen the complementarity within the luxury division.
With the arrival of Brioni, an Italian tailor with exceptional know-how, it is in line with our desire to enhance our presence in strongly growing segments. Here, I'm thinking of upscale ready-to-wear for men. Our sports lifestyle division is adding to Puma with the integration of Volcom and Electric. This way, we are very much in the action sports segment. This is a segment which is very much part of a focus of our development, as identified in recent years. This is an area which really reaps benefits of cooperation with Puma, but the brands are not in any way encroaching on each other's territory. We also intend to become a major player in the outdoor segment. This is a segment where Tretorn gives us a toehold, and this can be further developed, and that's something we're certainly going to be doing starting this year.
Outdoor is also a segment that's growing strongly worldwide, and here we can say the synergy with Puma brings us to develop high-performance products. We've got clear synergy with Puma in apparel and shoes as well as accessories. There's considerable potential for our existing sports and lifestyle brands. Expansion into new territories, new markets, development of distribution networks are going to be our priorities. Our brands also will broaden their footprint, their penetration into new product categories. Even more naturally than in luxury, there's a great deal of further synergy that can be achieved in sports and lifestyle, especially in the area of sourcing, logistics, supply chain, sharing know-how, product development, distribution, as well as brand marketing. Now, to support our transformation with each of our brands, we've looked forward.
We've looked to the distant future all the way up to 2020, and today I'd like to give you a few figures which I think clearly show us what we intend to do as a group. Our number one ambition is to build a group of at least EUR 24 billion in revenue by 2020, EUR 24 billion, 60% for the luxury division, 40% for sport and lifestyle. We're talking about tripling the current size of those two divisions by the end of the decade. The group will see over half of its revenues will come through its retail network. The wholly-owned stores, over EUR 1 billion should be achieved from internet sales. The group will be built based on an HR policy which will really make it possible for our employees to use a global mobility platform to help build their career path so they can go beyond their individual brands.
I'd also like to say that we have appointed Beden [Isiutulio] as Human Resources Manager for the group. Beden is here. Welcome to Beden. Beden has had a beautiful career in major international companies, including spending eight years at Hermès, where she got a full understanding of the luxury sector. One of her main missions will be to reach gender parity among senior managers in PPR by 2020. Lastly, our group will be able to meet its commitments in the area of sustainable development. You know this is a priority of our strategic development. We're really going to be publishing our consolidated environmental profit and loss or income statement so we can really show what our ecological footprint is to better pare it down.
Before opening for a question and answer session, let me just remind you of the sound underpinnings that have really supported excellent performance in 2011 and are the reason we are very confident in looking to future years. Our brands are powerful, and they contain tremendous potential for organic growth because they are in step with the major consumer trends today: a greater affirmation of oneself, some hedonism, consumers feeling real responsibility for their choices. We're seeing countries having similar tastes, and intergenerational tastes are similar as well. Our brands are very strong because they've got a good geographical spread as well. We very carefully manage their brands' growth at their business locations, and these brands are flexible to really keep pace with changes in market conditions. These are the fundamentals.
We're going to be using these to build a long-term situation, and we're also very confident in our ability, once again, in 2011, 2012, sorry, to generate sustained revenue growth and to further improve operational financial performance. I'd like to thank you for your attention. Jean François and myself, along with the senior managers of the group who are present here, would like to field any questions you might have now.
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[Foreign language] from [SOCG], and I have a couple of questions on luxury. You've reached high levels in operating margin: 25% in luxury, 30% in Gucci. What's the next level, the next increment, both for the Gucci brand? I mean, can we target 35%? Mr. Di Marco is there. Maybe he'd like to share some of his insights forecast with a second question on Redcats. You restated your accounts for the sale. I did not get it. It's looming. Could you maybe share with us that horizon? There's an adjacent to my question. If ever it's not sold in the year, what happens? Is it reintegrated in the accounts?
[Foreign language]
Unless [Foreign language] discussed the Redcats process. As regards luxury and the significant increase, not just last year but over three years, as Jean-François pointed out. Patrizio Di Marco here, prudent then, but I can say that the potential of brands, even the leading brands, that potential remains considerable, both in business and profitability terms. What's important to look at is the luxury division of the group. We have a very complementary luxury division, not just in terms of business, product category segments, but also size-wise. In terms of profitability, we have significant profitability potential in the other brands. Basically, in the next few years, we have a strong ambition to grow the overall profitability level of the luxury division. Jean-François, perhaps on Redcats? Yes. On Redcats, the disposal process is on track. It's continuing to unfold.
We're currently talking to several potential buyers who've undertaken due diligence and who are working on the putting in place of their finance. All is going according to plan, and we're expecting reopenings of the debt markets to reopen so that buyers could put a finance offer into it. Hello, Antoine Belge from HSBC. Three quick ones just to return to the performance of the Gucci brand in Q4, which is somewhat below par. The consensus organic growth, 12%. You stated that you want to limit wholesale sales in Italy. More about that. Asia posting 11% growth, which shows a degree of slowdown. Are there any exceptionals, one-offs, underpinning that slowdown in momentum? Second question with the $24 billion target in sight for 2020. What is the share linked to acquisitions in that objective? What type of acquisition will be included?
I'd love to quickly just return to the acquisition of Brioni. At the time, we didn't know the 2011 numbers. Could we have the revenue number and operating income 2011 for Brioni? Also, the acquisition prices for 2011 being disclosed. As regards Gucci wealth, then outstanding year for Gucci 2011. Growth and profitability Q4. Be careful of the dictatorship of rates. It's slightly lower, but we have very favorable dynamics for Gucci, making us very optimistic internationally, also in Asia, in terms of the brand's potential going forward. Maybe Patrizio on the Q4 of Gucci like to say a word?
I'll clarify that. I think that you have to be ambitious in life. If you believe that the foreign border was disappointing, you know, not according to consensus, from my point of view, that's what you say, and you're rightly so. After actually having the kind of growth to have quarter- on- quarter year after year, I think that that's an important thing. I honestly do not see, and as François-Henri Pinault said, we're very much confident on what we have achieved and what we will achieve in the future. It's pretty much what I can say. As far as Italy is concerned, our deliberate decision is simply in perfectly line with what Gucci has declared a couple of years ago to do, which is basically to reinforce the retail channel and more and more to shift, basically, our sales towards that channel versus the wholesale channel. It's pretty much in line.
Let me add that it's in these growth rates that are quite outstanding, that we're notching up quarter after quarter. We have a major responsibility with the brand CEOs to put in place the capabilities to sustain these growth rates, and this is what we must do. Of course, that from time to time may result in a slight slowdown, but doesn't in any way penalize us or challenge the brand potential either internationally or in Asia, or even less so in China, of course, and it's particularly true for Gucci. Turning to the $24 billion objective, Jean-François, you built with the CEO that ambition. It's an ambition that we forged this summer that is all brands have worked, have prepared the PPR of the future.
With that aim in mind, with that objective, that it's not an objective, it's an ambition to achieve $24 billion rests essentially on organic growth. Acquisitions constitute a very minor portion of that ambition. It's really on the organic growth potential that rests the work of imagination and the ideal of what brands can be by that horizon. In terms of Brioni, we disclosed the 2010 revenue number. Revenue for 2011 is just below the $190 million mark. As to the acquisition price in respect of a transaction with individuals, I mean, this is that will remain that item will remain confidential.
Hello, I'm from the Figaro newspaper. Just to follow up on what my neighbor was asking about Redcats. Previously, you stated that there were already a few potential buyers who had the funding. I mean, has that situation changed?
Why are you more optimistic now as regards to that situation, more optimistic than you were previously? Next question. Jean-Michel Noir, is he still part of the committee? I mean, I noted that he wasn't here this morning. Italy, what's the solution that you're looking at? Just to Jean-Michel, Jean-Michel, indeed, like Alexander here, member, full member of the Group Executive Committee, no doubt about that. He had a professional engagement this morning, and so apologize for that. Eric Courte, who's the CFO of Redcats, is here for any specific questions on that, and there's no debate about that. Once again, the Redcats sale process, what you're mentioning, actually two processes, two separate processes, albeit successive. In July last year, we worked, we, PPR, worked with banks to put in place funding. This financing at the end of July was put in place.
During the summer break, you're familiar with what happened, the sovereign debt crisis. After the summer break, banks said that funding had dried up. That's why we changed the arrangements, the modalities of our process. That is, from a process of an auction, an open auction process, we focused more on a limited number, less than a dozen partners. These are funds that can raise funding in and of themselves, which they're currently doing. Due diligence has proceeded on that basis with them, and they're working on their funding profile to submit an offer with a check that goes with it. Otherwise, we won't consider it. As to Fact Italy, we have several options for selling Fact Italy on the table. This is a process that is underway. It's on track.
[Foreign language]. Calling from Liberty Capital over here. your questions.
Firstly, your position in Puma appears to have risen to 80% for the full year, which is a sharp acceleration since August when it was 75%. Could you just explain what your thoughts are about buying out the minority in Puma and whether you hold any shares in derivative positions as well? Secondly, the EBIT at Volcom was well below what was forecast at the time of the acquisition. Could you just explain? You mentioned that there were some accounting issues there. The third is, for the past two years, you have invested quite heavily in working capital and building inventory positions. Will that continue, or do you think that in the current year we can expect working capital to return to a more normal position?
Concerning Puma, as you know, our priority is not to buy minority shareholders. Our priority is really to grow the brand, to make sure that we are on track with the plan that was presented one year ago, which is the case. It's important to state that in 2011 Puma reached goals in terms of back on the attack plan, in terms of sales, but also in terms of profitability. That's our main priority. For that, on the percentage of the stake we have now, it's almost 80%.
It's 79.9%. We made the most of somehow low price to take the opportunity to buy back some shares. Puma did in Q1 and Q2. That's it. That's where we came to the 80%. Again, the priority, like François-Henri Pinault just said, is to concentrate on making Puma a fast-growing company.
Concerning Volcom, the accounting of the purchase, of course, is at stake here. Jean-François, maybe you can give us some comment on that?
Yes. You know, when you acquire a company, you have to allocate the funds that you pay for the company to the balance sheet. This has impacts on the P&L of this company. Particularly for Volcom, we had to, as constrained by the accounting rules, revalue the inventories, considering that the inventories have you take them at the selling price when you acquire the company, meaning that you don't make any gross profit on the inventories that you purchase. That's why the EBIT of Volcom was affected by one-third, roughly, downwards this year. Again, this is a one-off impact that will not be reconducted next year.
We are very pleased with what we found at Volcom in terms of performance, in terms of strength of the brand. As you know, the integration is going very well with Puma. Your brand is working with the Volcom team and the Puma team to make sure that sourcing, logistic, but also product development is on its way, and it is. We are quite confident in our ability to grow not only the size but also the profitability of Volcom in the future.
For inventory, we have had indeed an increase in inventories in 2011, only in Luxury and Sports and Lifestyle because Redcats reduced their inventories. This increase in inventory is due not only to the support for growth but also to the increase in the cost of raw materials and the cost of manufacturing. We are very much on it, particularly with Marco, who's very much aware of his inventories. This is something that we do monitor very closely. If we consider the future sales that are forecasted in the budget, we have a decrease in the inventory turnover.
[Foreign language]
I'm from Measure Markets. I'm a journalist. I just wanted to come back to Redcats, very briefly, if you don't mind. Potential bidders, are there only funds that are potential bidders? Will you be doing sales by geographical location? Would there be more difficulty for Redcats in the U.S. in that case? Other questions. Interested in Elianson? Elianson. Redcats process is underway. We're extending deadlines due to the circumstances of the financial markets to simplify and further improve the scope of Redcats. A lot of work has been done by Jean-François and his teams. We do not intend to break up Redcats, cut it up into bits and parts. It's, as we heard earlier, it's mainly private equity funds who are interested in the company. Regarding a possible acquisition or sale, no comment here.
[Foreign language]
From the Tribune newspaper. I'd like to ask about Redcats. What's the amount of check? EUR 2 billion? Also, could you clarify things regarding the outdoor market? Are we talking about a major acquisition? Are we talking about a Volcom-type acquisition that we saw this year? On Redcats, you can well imagine we're in negotiating. You don't give your price in advance. These are discussions. It'll be done in PPR's best interest and Redcats' best interest. I'm sure we'll reach the right price to do the deal in excellent terms. Now, regarding the outdoor marketplace, I've said this is one of our number one priorities to develop our sports and lifestyle brand's portfolio. Of course, we'll make acquisitions in this area. I, of course, will not be disclosing any names here. It's always our same rationale, both in sports, lifestyle, and luxury.
We are interested in medium-sized, mid-size acquisitions so we can really maximize value creation by further developing the brands. You see a lot more value creation in this area. We've seen it in luxury. Remember, when we acquired it, they had, what, EUR 35 million in revenue, and Bottega today, last year, what was it? EUR 700 million. We're talking about value creation in that activity. It's substantial, and it's something very major. That's still a rationale. That's sort of the way we do things. It's a trademark when it comes to our strategy of acquisitions and building our group's portfolio.
[Foreign language]
[Foreign language]. Three questions. Firstly, on the Schnack restructuring plan, is this all included in the $58 million this year? Second question, price policy. Clearly, in 2011, with openings and price hikes, that fueled growth for Gucci, Bottega Veneta, and so forth. What about 2012 in this respect? Lastly, Gucci today, Gucci's retail network, basically, in terms of numbers, 75% of the leading brand. I'd like to know what leverage would be here that you might use to continue development there and improve growth. The accounting impact of the Schnack cost-cutting plan isn't included in the financials of December 31 because this was announced after the closing of those accounts. It was also announced to employee representatives even after that. The financial impact is not included in our financial statements as of December 31, 2011, for the Schnack group. Now, price increases. Yes, it's true.
In our luxury brands, our price policy has been very targeted. It's part of our overall merchandising policy. The idea is on bringing all of our brands more and more upscale. That's our ongoing policy, and we'll continue with it in 2012. Onto potential for growth in our main brand, Gucci. You saw it's two times smaller than the leading brand in the marketplace, which makes us extremely optimistic, especially because we think Gucci is a global brand. It's deemed a major brand throughout the world, very much a leader. We can say that we can still see growth in other categories. A year and a half now, they launched their children's products, wildly successful worldwide. We're now working on a gifts product line, which may also generate substantial growth. Geographical growth is still part of the potential. It's probably the main potential for Gucci.
Our store network hasn't reached maturity yet, so we need to make further efforts there as well. Of course, in the retail stores network, you've got stores where we have to adjust their size, considering the size of the brand and further product categories. Stores that have been open for a few years are turning out to seem a little bit small. They'll have to be enlarged. There's also great potential there. Let me also say this. In emerging markets where we're seeing strong growth thanks to our brand's momentum, we've got potential for increasing existing stores' productivity. We've really stepped up the pace of store openings to take on market share, to keep our brands going, to have them well understood in these brands. Now, we've also got to follow up that work.
We've got to set up training structures and so forth to enhance productivity and especially sales per square foot. This will be a real source of growth for the brand worldwide. You can see it's a brand that certainly is still young. It's sort of a teenager, so to speak. If you take a look at the size of their number one worldwide, we still have a great deal of potential with Gucci.
Hello. I'm from Women's World Daily. I'd like a comment on the case with Christian Louboutin and Yves Saint Laurent. Monsieur Louboutin had some quite harsh words in respect of PPR and the liberation. Do you just make any reaction to that? I really regret this. Christian, I know him personally, and I have very respect for what he's done. In spite of the good relationship, he decided to sue Saint Laurent on this red color. It will not have escaped you that the maison Yves Saint Laurent has some legitimacy on this color for many years now. I've strove in all possible ways to reach an arrangement in the best interest of both brands. It wasn't the desire of Louboutin that decided to sue Saint Laurent. We won the. First
Rounds of our process are quite clear, and so I'm very confident on the case, even if I regret it because these are two leading houses. We have better to do than to fight in the courts over a question of color.
[Foreign language]
I don't know. I don't know if you have an idea of the CapEx program going forward. CapEx 2012 will rise significantly, in particular, those for openings and store enlargements, notably in the luxury segment. The package, we never give guidance, so we'll continue with that.
[Foreign language] . We're talking about reducing import tax for luxury goods in China. What would the impact on your brands? At the end of September, I went to China, met the trade minister. We were more talking about the possibility of a drop in import tariffs for luxury goods in China. I was pledging our group that were that to be the case, that we would pass those decrease in import tariffs to the sale to consumers in China. Chinese authorities are more considering along those lines than the opposite. Those were the latest discussions we had in China. Maybe just one last question in the interest of time. Concerning your ambitions rather than objectives, two questions. The portion of retail business, 54%, I think concerns more luxury than lifestyle. Yeah, it's more lifestyle. Correct?
Because the objective of Puma, I think, is 20% only, right, for the retail segment. An objective and ambition regarding profitability looking out to 2020? Only 2020 forward-looking exercise that we undertook with all our teams. I mean, when we state that 50% of the business will be through our own networks, that's essentially through the luxury brands because Puma is a very different model in this respect. Today, we're about 17, 18% of the Puma business achieved through the stores. The bulk is through third-party networks, and that's the most relevant model today. Once you've said that, you have to distinguish mature from emerging markets. Mature markets where distribution networks are very structured, where the wholesale model is very profitability, return on capital employed, very efficient model. Emerging markets where the retail networks are far more in their infancy or even nonexistent.
We must develop our own retail network that we're doing in these countries around Puma. You have to understand that looking out to 2020, it will be the luxury division that will be driving the bulk of retail sales and of profitability as Jean-François. No guidance on profitability and to an even lesser extent in 2020, but it will be good. Okay, let's wrap this meeting up. I'd like to remind you to recall our confidence in.