Half-year accounts. Let me introduce you and give you a quick presentation of what has happened over the first half of this year. Before I give it, I'll pass it up to the floor and ask him to look into the details of what we have happened in the group and also give you a detailed rundown of the half-year account. The first half of this year was very important in that it related to the changes in our group, in the changes in our organization, and also the implementation of our strategic plan.
As we had said in February when we gave you a presentation of our full-year accounts, we decided to focus on further improving the effectiveness of the group and therefore decided to bring together at the PPR level, at the group level, a number of shared functions that had been scattered across operational entities up until then. That means, amongst other things, that the luxury brands are now directly under the group. The purpose here is to strengthen the brands' potential so that they can focus on anything that is related to the customer, obviously creation and products, but also what is inherent to the identity of the brand, the materials, the PR choices, the design, and store.
Everything that can be put together without really having an impact on the image, the brand image in the customer's eye, will be done so as to further limit our costs and speed up our processes. Now, in our luxury division, which I head with Alexis Babel, this has led to the identification of a number of new synergies that will enable it to act in a swifter fashion and in a more effective way. Similarly, Jochen Zeitz has handed over the job of CEO of Puma and will now be able to focus on sports and lifestyle. In this division too, the sport functions will be brought together, pooled, and harmonized. In PPR, we are establishing cross-cutting divisions to support operations. For instance, e-commerce, centralizing advertisement, logistics, real estate, integrating IT systems.
These are the sort of things we're starting to look at, and obviously, there will be other actions further on. In the first half of this year, we also saw what happened in the corporate social and environmental responsibility approach at the PPR level when we announced in March that we were establishing PPR Home. This initiative is under Jochen's stewardship, and we will go well beyond the traditional corporate social responsibility approach. It will lead us to think or rethink our brands with a concern for sustainability, and this will lead us to change the corporate paradigm and bring together, for the long term, creativity and sustainability. While we were doing this, we were also focusing on our two strategic approaches. I'll spare you the talk on Volcom and the acquisition. We discussed this at length when we launched the acquisition process.
As you know, synergies between Volcom and Puma are at the heart of this operation. Our teams have already identified integration prospects, and this confirms the relevance of this acquisition in that it will bring growth and potential expansion and development across the world. You may have heard also at the beginning of the month that we took over Sowind, the group of haute watchmaking, which we already had a stake in and had had for the last three years. This owns the Girard-Perregaux and Ulysse Nardin brands, and we will be able to speed up the development of these brands while at the same time preserving their exclusive approach and also share this approach and this skill of Sowind to the other luxury brands, Sowind being one of the few remaining independent Swiss watchmakers that has a tradition going back a number of centuries.
As you can see, this means that we are focusing on the growth and the profitability of our group for the future. This has been done while at the same time having excellent results in our operational side. In luxury, the half-year was very good. The revenue up more than 23% and the recurring operating income up more than 39%. Each of our brands, whatever their sizes, have made a contribution to this. I don't want to give you a long list of them, but let me just focus on Saint Laurent. The results were very good and driven mainly by Couture, given the great success of its collections, which bring together modernity and remains steeped in history. Saint Laurent derives great benefit from the beautiful exhibition at the Met in New York and also due to that wedding dress related to which crowned Sarah Burton's talent.
I could also give you a long list of other brands that have had very good results over this half-year, but let me move on. In sports and lifestyle, and you'll remember that for H1, there was only Puma in sports and lifestyle. The results were fully in sync with the back on the attack strategic plan that Jochen and France had introduced with me to you late in 2010. 11%, more than 11% revenue increase across the board and across the regions. ROI has gone down slightly, as has profitability, but this is perfectly in line with what we are doing to make sure that Puma can reach its ambitious targets for 2050.
All in all, the businesses that will be at the heart of PPR for tomorrow have enjoyed an 18% revenue increase and a 25% increase in recurring operating income that has led to a significant, remarkable, indeed, operating profitability, which will go on improving and growing because of the initiatives I have outlined. The half-year results of our group have been affected by the slowdown in consumer spending in France and in Western Europe, more specifically in the field that Fnac operates in. Fnac has had to manage the difficulties of the technical products market and also the macroeconomic problems of Southern Europe, as was also the case for this with the slowdown of the sale of editorial products. A couple of days ago, Alexandre Bompard, the CEO, announced a Fnac 2015 recovery plan, which would enable us to have a sustainable and profitable growth in the future.
Redcats has put up a better fight given its business, its online business, and this business's contribution to the total revenue of the group is further increasing. This has led, therefore, to a 10% increase in the recurring operating income for this half-year. Now, before I give the floor to Jean François, let me just remind you and state once again that I am very confident, indeed, that there will be growth over the whole year. Our fundamentals are sound, and our strategic changes will enable us to have excellent performances and excellent results over and beyond 2011. Our success is due, obviously, to the hard work of our people across the world. Let me thank them. It is them, these people, that will enable us to enjoy customer loyalty. It is through these people that we can innovate year in, year out. Let me just give you a quick presentation of what we've done in the luxury brands division.
Ladies and gentlemen, good morning. Before commenting our results, I'd just like to remind you that you'll find all the usual information in the half-yearly document you received at the entrance. Furthermore, the details for the revenue of Q2 are annexed to this presentation. Lastly, let me draw your attention to the fact that my comments on revenue are at comparable scope and exchange rates. As François Henri Pinault indicated, our first half results are very satisfactory. Revenue for the first half is up 7%. The very good trend of Q1 was confirmed in the second quarter, posting an acceleration of over 8% growth. Our recurring operating income is up close on 15%, and profitability is also up, exceeding 10%. Let's now review the operational performance entity by entity.
Let's start with Gucci, which the first half posts a strong growth of its revenue, marked by an acceleration of sales in Q2, a remarkable increase of 23%. The success of collections drove growth both indirectly on stores as well as third-party distributors, and the timepieces business contributed once again to this fine performance. All our product lines are posting double-digit growth. In leather goods, the average sale price is once again up, and the contribution of leather, no logo, and precious skins to the mix also increased. This confirms the great strength of the brand, which combines modernity and heritage and demonstrates the quality and appropriateness of our collections. In fact, the new children's collection puts in remarkable results. Over the half, emerging markets posted a net acceleration of their sales, accounting for 43% of total revenue of the brand.
Eastern Europe, Middle East, and Asia-Pacific all post double-digit growth rates. Greater China continues to grow at over 36%, and at the end of June, accounts for 23% of total sales. Western Europe maintained a strong growth of sales throughout the half. The rebound at Q1 in North America was confirmed in Q2. In spite of the quake and the tsunami that struck Japan last March, Gucci is posting in this country an increase of close on 15% of its sales in Q2. The recurring operating income of Gucci reaches EUR 439 million. Operating profitability is up 270 basis points. The margin rate of Gucci is slightly up over the previous year. This is in large part a result of the upscale movement of the brand. In order to strengthen the brand and its positioning, advertising and marketing spend are further up, but they remain stable in percentage of revenue.
Gucci had 345 stores at the end of June, 131 in emerging countries, and since the beginning of the year, it has opened 28 directly-owned stores, whereas it opened 12 in the first half of 2010. It will continue to open stores in the second half, particularly in Greater China and Brazil. Gross investment by Gucci increased by 4%. Given the number of openings planned, the investment in stores should be up by 40% over the year. Let's now move to Bottega Veneta, which over the half posts a strong growth of its revenue and a marked increase of its profitability. The attractiveness of Bottega Veneta was fueled by a strong innovation trend, enriching the permanent lines as well as the introduction of seasonal models that were very appreciated by the customers.
In leather goods, whose sales are sharply up over the period, the brand benefited from the uninterrupted success of its iconic lines, and the new models, as well as novel colors, were very well received throughout the world. Growth in emerging countries intensified, now accounting for 40% of total revenue of the brand. Asia-Pacific confirmed its place as number one market. Greater China now accounts for 23% of total sales. In North America and Western Europe, the brand posted strong growth quarter after quarter. In Japan, after a Q1 slightly down, Q2 is posting stability of sales. Recurring operating income of Bottega Veneta is sharply up over the half. Gross margin is sharply up, and the direct costs of the store network also increased significantly in order to promote the brand image and promote its exclusivity and to ensure high visibility. Advertising and marketing spend increased in proportion with revenue.
Over the half, the brand opened net nine new points of sale, including four in continental China. The network of directly-owned stores numbered 157 at the end of June. Let's now turn to Yves Saint Laurent. Its revenue is sharply up since the beginning of the year. Q2 marks a net acceleration of trend of 34%, fueled by the success of the spring-summer 2011 collection and the first deliveries of the autumn-winter collection. Shoe work posts remarkable growth, as well as leather goods, whose strong growth is driven by the introduction of new lines and permanent lines. Prêt-à-Porter also posting very positive trends over the half. Yves Saint Laurent, at the end of June, achieves 26% of its business in emerging countries. Asia-Pacific and Eastern Europe continue their strong growth, posting double-digit growth levels. Western Europe and North America sharply increase their growth over the half.
At the end of June 2011, Yves Saint Laurent posts a profit of close on EUR 7 million against a loss of EUR 6 million last year. This very significant improvement in income is the result of the progress achieved in the couture segment. Gross margin is sharply up thanks to the success of the brand's collections. Operating costs are up over the half, essentially due to the effects of the extension of the store network. Since the start of the year, Yves Saint Laurent continued its optimization program of its stores, and the brand had 80 directly-owned stores at the end of June, 25 in emerging countries. The brand will accelerate its growth in the second part of the year, in particular in emerging countries. Let's now turn to the other brands of the luxury segment.
They post in the first half an increase of 22% in their revenue and a sharp increase in their operating income. Balenciaga maintained a sustained growth level with very strong growth in leather goods and Prêt-à-Porter, as well as an increase across its markets. Gucci continues on very good trends and for the half posts double-digit growth in revenue. After a first quarter down, Stella McCartney is back to growth in Q2. The revenue of Alexander McQueen is sharply up over the half, and in Q2 posts a net acceleration in sales. Stella McCartney also puts in very high growth in revenue, both in directly-owned stores as well as with distributors. For the remainder of the year, creativity, as well as geographic and sales expansion of all our luxury houses, should allow them to once again deliver remarkable performance. A few words now on Puma.
Over the half, Puma revenue posted sustained growth marked by an acceleration in Q2 in excess of 14%. All segments, excluding team sports, which last year benefited from the World Cup, put in very good performance. This momentum is the result of a sustained level of innovation and creativity, as well as marketing initiatives aimed at boosting the product offering and attracting new customers. All brands are sharply up over the half, marking an acceleration in Q2. The EMEA area posts strong growth driven by footwear and accessories. The American continent posts a sustained growth of its revenue, with in particular dynamic business in textile and shoes. Puma performance is remarkable in Latin America, where all countries are sharply up. North America posts a marked improvement in Q2 and records strong growth over the half.
Asia-Pacific is up for double digits in the first half, particularly in Q2, a marked rebound up 20%. India, China, Korea, and Japan continue their strong growth and posting double-digit growth over the half. At the end of June, Puma order books are strongly up, driven notably by Latin America, Japan, Russia, and India. Over the half, Puma's recurring operating income is down 7%. In spite of the increase in the price of raw materials, Puma has managed to limit its drop in gross margin over the half, consistent with the back-on-the-attack plan aimed at investing in the brand to prepare its future growth. Puma has strongly increased its marketing and product development spend. The increase in marketing expenditures is linked to the global dissemination of the Puma social and Puma flags campaigns, and you'll see the pictures of that before our Q&A session.
Puma has opened 32 new stores over the half, located in large part in emerging countries, and will continue its expansion over the rest of the year. As you can see, Puma is on track with its strategic plan aimed at boosting the attractiveness of the brand and solidifying its tremendous growth potential. Turning now to Fnac. In the first half of 2011, Fnac's results are disappointing. France posts a decrease in revenue over the half by 4%. Out-of-town stores continue to show better sales momentum than those in the city center. Internet sales continue their sharp increase and that across product categories. This confirms the success of this channel that now accounts for 12% of the business in France. Fnac activities outside France now account for 34% of total revenue of the brand. They are down over the half.
All countries are suffering from a challenging consumer context, in particular Portugal and Spain. However, Spain in Q2 is putting in a very satisfactory level of activity, where it now represents the growth driver for Fnac internationally. Internet sales only account for 6% of total business and are sharply up. Recurring operating income of Fnac stands at EUR 1 million for the half. Gross margin is down. Given the increase in the weight of technical products in revenue, Fnac continued rigorously its cost containment effort on a comparable basis. The operating costs of stores are down. Costs dedicated to developing internet activities have increased sharply. These are the costs to invest in internet business. Fnac opened three stores over the half, two out of town and one in Spain, and will continue its opening plan over the rest of the year.
The significant increase in CapEx is in large part due to payment lags. Restated for these lags, the increase would be 17% and is exclusively linked to the growth of internet activities. A few days ago, Alexandre Bompard presented a plan to boost the sales activity of Fnac. The first initiatives of this ambitious plan will be implemented after the summer break. Turning now to Redcats. Redcats puts in for the second consecutive half an increase of its revenue, thereby confirming the turnaround of the brand over the half. The contribution of online sales continues to grow. They now, at the end of June, account for close on 57% of total revenue. Redcats is against 52% at the end of June last year. Redcats thereby once again strengthens its internet leadership in fashion and decorating, with online sales up 10%.
La Redoute's sales in France are pretty much flat over the half, with the Q2 up by over 2%. Online sales for their part post strong growth and account for 77% of total revenue. New thematic catalogs, as well as specialized sites launched in 2010, put in very satisfactory results, and La Redoute continues innovations on its internet site and mobile applications. After a stable first quarter, La Redoute International's business was adversely affected by the disappointing performance in Q2 of the women's spring-summer collection. The increase in sales in Italy, Norway, and Russia did not offset the drop in business in other countries. The Scandinavian segment once again posts strong growth. Internet sales are double digits and account for 68% of total business. Revenue of the children's family unit is sharply up with an acceleration in Q2.
In the U.S., the sales of large sizes unit are down over the half. The repositioning of Jessica London means that it can put in a fine performance, whereas the Woman Within and women's activity is down over the half. Avenue also posts a sharp deterioration in its sales. The sport and outdoor segment in the U.S. is significantly up over the half. Online sales once again post further growth and account for 73% of total revenue. In the first half, Redcats managed to maintain its profitability in spite of the sharp deterioration of the operating income of Avenue. Excluding Avenue, Redcats' results would be up by close on 6%, and profitability would reach 5.6%. This confirms the successful transformation of Redcats' business model. Sales investment aimed at boosting business, bringing in new customers, and revitalizing the files were intensified. Various action plans continued to bear fruit.
In total, over the half, operating costs are once again down. For the rest of the year, innovation will be a powerful driver of profitable growth for Redcats. For the good operational performance of the group, there are some very satisfactory financial results. Other non-current income and costs account for a net cost of EUR 27 million. The financial cost stands at EUR 109 million. Net cost of debt stands at EUR 111 million and is down by 2%. This is a result of 18% of the average net debt of the group and the increase of 40 basis points of the average financing cost. The total tax rate is down over the half and stands at 28.6%. Restated for the non-current effects, the tax rate is improved by 70 basis points and stands at 27.5%.
The results of company equity include, in large part, the contribution of CFAO, and the recurring net income group share stands at EUR 466 million. That's up 24% over June 30th last year. Earnings per share is up by 16% to EUR 3.56, excluding non-recurring items. The net earnings per share of activity stands at EUR 3.69, up 24% over June 30th, 2010. Let me remind you that PPR generates a large part of its free operations cash flow over the last six months of the year. The first half of 2011, its free operating cash flow stands at EUR 125 million. The change in the working capital requirement is principally due to stock increase linked to sourcing anticipations aimed at limiting the increase in the cost of raw materials. The change in the tax on results of that extends essentially from the result of the income of 2010 over 2009.
Net financial debt of the group stands at EUR 3.7 billion on June 30th. Acquisitions and sales of securities include for the large part the reception of the sale price of Gotham and the disbursement under the acquisition of Volcom stock, which will be consolidated by global integration at the 1st of July, and the acquisition of Puma stock, as well as the purchase of close on 810,000 PPR shares. To conclude, as François Henri Pinault indicated, we're confident in our capacity to maintain over the rest of the year sustained growth in our business and to further improve our financial performance in 2011. Before beginning our Q&A session, let's take a look at the latest Puma Fans campaign and discover Volcom in pictures. Thank you for your attention.
[Foreign language]. All right. Are you there? You have it. A few pictures, but they were worth watching just before the holidays, even though there will be a few questions. You might have recognized Jean-François Palus on the big wave there in Hossegau. Anyway, right. Questions if we want to, if you want to put any. There are two people out there with microphones, manning the room. Yes, lift. Yes, yes, here. Hello, Alexandre Bompard, Ginevra Elkann, and Sophie L’Hélias. Three questions.
The Gucci brand has experienced a very high increase in the margin in H1. It's 270 basis points, so something that can last over the year. I understand that there will be stores open in H2. Exchange rates will not necessarily be very positive there. Yves Laurent has experienced clearly an increase in growth and profitable growth at that. You haven't mentioned targets, long-term targets, for quite some time. Could you tell us more about the potential of the brand in revenues and also margin? On, relating to Fnac, you've mentioned a recovery plan. Are there any restructuring costs related to that plan? If so, could you give us a few numbers? Finally, when will that start having a positive impact? I think the media had said something about H2 2012. Is this pretty much the timeline you're working on? Jean-François, would you take the first question?
Yeah, thank you. Although Gucci, as is the case with most of the luxury brands, in fact, the variation in exchange rate has, in fact, been slightly positive over H1. The hedging impact was almost inexistent, at least less negative than it was last year. The conversion impact was, in fact, slightly positive. Obviously, on H2, I can't forecast the changes in the variation in exchange rates, but you've noticed that there is significant volatility. There are very diverging evolutions or changes in on the dollar, the yuan, and the yen. I think we're expecting something similar by way of an impact, slightly positive, therefore, with a slightly reduced hedging impact and a slightly less positive exchange impact. I think our gross margin is still pretty good.
Costs will obviously be directly related to the expansion of our sales, stores network, and we're therefore positive on the outlook for Gucci and the other luxury brands for H2. Yves Laurent, as you will have noticed, the results for H1 were exceptionally good. As Jean-François said, it's almost exclusively related to the couture business. Licenses, perfumes, and have, in fact, remained flat. This is obviously related to the restructuring that was conducted over the last five years, but also to the fact that over the last 12 months, we've started to expand and reopen stores, reorganizing our network and refocusing on Asia. We've cleared out the network of stores in the U.S. and in Western Europe when it was necessary. It seems that the uptake is excellent in Asia. All the products are being bought. The margins are very good.
We therefore are convinced of the profitability of that brand outside the nightstands and also convinced of the potential. We spoke about EUR 300 million to break even. That's what we're currently achieving. The potential for growth, well, that's a very significant one. Very significant, indeed. We will go on focusing on opening more stores, as early as H2. On Fnac, I will give the floor to Alexandre later on. I'm sure he can give you more about the plan and the expected impact. Let me just say that what was really important and what I asked Alexandre to do when he joined the study in the EU was to really rebuild a senior management team that would be able to rethink Fnac. Obviously, it's a decent business, but it has to rethink itself for the long run, and that's exactly what Alexandre is doing.
He's completely overhauled the senior management, the people that are now in place. As you would have noticed when you heard what Alexandre said a few nights ago, they have developed a very concrete, detailed, practical recovery plan, and that's exactly what we're going to implement. Remember also that there are a number of new businesses that will be developed at Fnac and new skills acquired. There'll be discussions with the unions as of September on the future of HR management. What we really want to do is to relaunch the commercial business of Fnac as of now. Alexandre, do you want to say a bit more?
It is indeed a recovery plan, a plan for the conquest of the market. We want to refocus our brand and broaden our business and go into technology and leisure. We'll focus on family customers and open up children's stores within our stores.
We'll be moving on from a product-based approach to a customer-based approach. We'll offer all sorts of services to our customers over the lifecycle of the products. We'll be completely overhauling our store concepts, including bringing in internet into our stores. We'll focus on the usage of products rather than products themselves. We'll try and make sure that there's some good interfacing between the two approaches. As you will have noticed, we'll be deploying our network. You will have noticed this. We'll be reopening out-of-town stores, somewhere around 30 by 2015, and also what we call closed-buy stores, about 300 square meters. We'll open them directly initially and then maybe have franchises. We have to rethink our skills and our workforce, and that's exactly what we'll be discussing with the unions as of September.
Obviously, we'll also go on rationalizing our costs, our purchases, both direct and indirect, migrating IT systems onto one single system, and making sure that anything we have started to do to bring down our costs will be pursued and effective, I hope, as of 2012 and even more so 2013. Thank you.
Thank you, Alexandre. Another question, please.
Alexandre Bompard, Ginevra Elkann, and two questions on the luxury segment. The first, technical question on the phasing of deliveries on Q2, Q3 on retail and wholesale. Does its impact account for the strong growth in Q2? Secondly, a word on the mix versus price effect. I know price increases will pass through when new collections are launched. Could you just return to the mix initiatives and how that was reflected in terms of mix and price on Q2 growth?
On the phasing of deliveries, let me say that changes over the closing in last year were not at all significant and really, focusing on great prudence. It's the smile that's important. In regards to the impact on revenue, there are volume effects on revenues, but also there are mixed effects, and that's important for luxury goods. Mixed effects are the upscale movement in our brands. Quite an important brand as Gucci was presented at a workshop in China. It has a very strong proactive policy of moving up from upscale accelerated over the past two years, and it's bearing fruit in particular this year because we have average price effects. They're not price increases, but they're more luxury goods that we're selling with average sale prices that are up sharply, to which is added, identical products.
A pricing policy that, as every year, was reviewed at the beginning of every collection. We don't change the prices in mid-collection. Depending on the categories and geographies, increases were adapted by product categories. There were a few this year, but it's true in particular at Gucci. The moving upscale effect has a very significant impact on revenue, on margin and profitability. On price for H2 at constant collection, there'll be price increases. Yes, there will be, but it's always the same. Every beginning of a collection, the exercise is done across brands by category and by country. What I can say, there won't be any price drop. If there are no price drops, there can be a stability or even increase. This is a systematic effort across our brands. Probably increases, yes.
Question from Reuters. Could you give us an indication about the increase of average price at Gucci linked to your moving upscale strategy? Could you give us some information about this increase, the size of that increase, and also a couple of other questions regarding the Redcats sale process? Could you give us some further information on the timeline or where you're at on that front and on your potential acquisitions in the luxury sphere, possible interest of Fibia for Brioni, the Italian tailor? Could you perhaps confirm that information?
On the average price effects, it's by product category. We measure it. In fact, we set targets, particularly for the Gucci brand, in terms for products in exotic skins, a proportion of exotic skins versus leather, general leather as compared to textile goods. That's how we measure the upscale movement, notably in terms of the bags and then the new materials used for Prêt-à-Porter. Overall, there are effects that are very significant. We make the calculations systematically, average price in the category from season to season. To give you the detail, no, because it's confidential to each of the brands. What I can say is that it has a very significant effect on the growth and business of the brand and throughout the world. Redcats, Jean-François. As regards Redcats, we're implementing a process that is fully identical to that which we used last year for Confora ma.
Currently, we presented the matter to the banks that were not familiar with this asset in order to put in place the staple financing, which would fund an acquirer, a buyer. That is proceeding and we're moving forward. The last part of your question, you're disappointed, but as per usual, we don't comment on rumors, be it in terms of disposals or acquisitions.
Yes, a question from here, Sophie. Could you tell us, give us a few numbers about leather goods in the luxury division? You said that leather goods were going up, and significantly so. Could you tell us a bit more and tell us how much that accounts for in your luxury business? Could you also tell us if all of your small luxury brands are profitable, and if not, who is it? Right. Have you got the exact number? No? Obviously, we can give it to you later, but I haven't got the number here with me. What was the other question? Sorry. Yes. Are all your small luxury brands profitable?
Yes, they are. They are profitable. Apart from Puma. I mean, it is profitable.
Sorry. Let me get this right. It is a profitable business. The revenue has gone, or the numbers have gone down slightly in H1 because they footed this bill for the whole development cost of the new Maitou collection that will be launched in September. That has slightly impacted their numbers. Apart from that, all of the other brands have actually improved their profitability and are profitable. Right. You don't want to give us the number of the average price and how much that has impacted the increase in the Gucci numbers for H1. Could you maybe just give us an idea of what the breakdown is in leather goods between usual leather, exotic leather, and maybe textile? More generally, on the increase of average price, could you tell us maybe if there is still some scope for increase, significant or otherwise, at Gucci?
On Yves Laurent, could you maybe tell us how you're going to clear out the store network, closures, and openings? You also say that your revenue business for your license business is flat in H1. Does that mean there might be something in store for L'Oréal?
Right. On the first item, I haven't got the details here with me. I've got it at the office. Give me your email, and I'll also mail it to you. My computer's not working from here, so I'm not really. Incidentally, I wonder what you might make of these numbers. Anyway, yes, we do keep an eye on these numbers. Again, I think what's really important to understand about Gucci is that the share of leather goods is increasing in our business, and that's a choice that we've made. We're also looking at branded and non-branded products in our business.
In fact, our target might be different from region to region. Stores, right. You want the whole luxury goods or one brand? Yves Saint Laurent, right. Okay. Yves Saint Laurent closed four stores and opened another five. Yeah, perfect. Four and five. That's exactly what we were saying. We closed the four in the mature markets, old markets, stores that were too big, not in the right position or too expensive, and that were basically relocated to what's important for the brand as it is, and the market today and growth market. That's why we're saying we're optimizing the network, not clearing it out. About Gucci still, you asked what our upscaling strategy is. Yes, the answer is yes. There's still a lot to be done, and there's still significant potential on the upscaling of the brand. We've done already significant work on that respect over the last few years.
There is in our markets, in our favored markets, a very strong yearning for high-end products in China mainly. You remember five or six or seven years ago in Peking or Shanghai, there was already a yearning for our products, and it's something to change. The brand name is not so big on the products nowadays. People are switching to something that is not branded or not visibly branded on the product. That means that the brand as a whole has to change its product line and also improve. Now, I spoke about licensed brands. I was talking only about the Saint Laurent brand licenses. So it's either McCartney or Gucci is doing a very good work. Now, with L'Oréal, we're working hard with Saint Laurent couture teams also and looking at new product launches. I'd say that we're sticking to our plan.
It so happens that at months end in June, the growth of couture is much bigger than the growth in perfume. L'Oréal is doing very good work in the U.S., for instance, or YSL Beauty was not very present in the U.S. or in Asia, actually. In fact, the brand is now acquiring market shares and becoming more visible on the Asian market more specifically, and that has a very significant impact on the store business also. I'm being told that the license as a whole has gone up 1% as at months end in June. Again, the launches are usually in the second half of the year. In September, October, there'll be new launches. Things are going pretty well. To pick up one of the previous questions, let me just say about leather goods in luxury accounts for 56% of the business, and in Gucci, it's 57%.
There you have it at months end in June 2011. Still, Sir Reuters, you say that there's a 1% increase on the license. Yes, on the Yves Saint Laurent license, you're saying that there's a 1% increase. Are you talking revenues or what? No, royalties. Royalties. So sales basically because it's a proportion of sales. Right. It's not that great really, is it? How can you explain it? Saint Laurent, you know, we expect a lot of Saint Laurent nowadays. In fact, if you look at the perfumes and cosmetics market and what L'Oréal is saying, for instance, their numbers, you have, well, you have a clear explanation of what's happening. Okay, thanks. Again, you have to think about the way the launch is planned over the course of the plan. We're on target, I'd say.
At the end of June this month, we were enjoying a 1% increase, but the brand is actually doing pretty well. The license was granted, what, the beginning of 2008, mid-2008, and the numbers have gone significantly up. Again, we're just talking about a six-month period here, so there are no specific problems. Jean-François and myself, once again saying that this 56% only includes leather goods as such, not footwear.
Okay, from Morgan Stanley. I shall be atypical and ask a question in English this morning. Would it be possible to talk about some of the colors of the underlying trends within luxury? Clearly, the U.S. has been very strong. How confident are you that that can continue into the second half, given the increasing macro challenges? In terms of Japan, clearly that's come around a lot faster than what we probably all anticipated in Q2. Is that still very volatile week on week, or do you think that's actually turned back to be more normal? Finally, I spot the Diets in the audience. Is it possible to give a bit of an update on lifestyle and the acquisition of Volcom? Thank you.
Okay. In terms of trends worldwide in the luxury field, we think that the trends will continue. The assumption behind us are very strong. Of course, in Asia, I don't see any reason why we couldn't sustain that level of trends in that region of the world. You have to take into consideration that part of the very good trend that we have in Western Europe, but also to a lesser extent in the U.S., is based on tourism. In that trend of tourism, the Asian tourism is very important, and it's linked to this very strong trend of economic growth in Asia. Our bet is that it will continue even in the actual market, not only because of tourism, but mainly because of tourism, even if the local clientele is doing very well in Western Europe and also in America.
On that trend based on local clientele, we think that this is the recovery after the two years of economic crisis that we had, and we don't see any reason why either that should stop or even slow down. America is enjoying also flows of tourism from South America that are very strong, not all over America, but on the East Coast and, of course, Florida, Miami. This is also something that should continue for the American market. Japan, as you have seen, is amazingly recovering after the catastrophe of the tsunami. A brand like Gucci in Q2 enjoyed a 14% growth in Japan, which is amazing. Of course, it's different brand by brand considering the positions of the brands in that market, but we think that this is very steady. It's not plus 20% minus something. It's really very steady.
It's really the capability of that country and the people of Japan to face a situation. There is a very strong momentum among the population in getting out of that crisis or that catastrophe, and it's also true for Puma. Puma is amazingly well in Japan, so it's really across products that this recovery is much, much earlier than we expected. Behind that, if you want to say some words about Open Lifestyle and Volcom.
Yes. I think the integration of Volcom is going actually exceptionally well. We have already identified quite a number of synergies with PPR as a group, as well as with Puma. Back-end synergies have been identified. I think it's the perfect acquisition at the right time. The brand is extremely strong. It's definitely poised for growth. The goal is obviously to put some fuel on the fire in order to capture the opportunity and the potential that the brand has internationally. I'd say it's really the right brand at the right time, complementing what Puma has been offering in the past. There are no overlaps. There's only complementary synergies.
Hello, Figure. If I could just put one of my earlier questions again regarding Fnac, the budget allocated to implement this ambitious plan, please. Alexandre, would you like to take that one even if the information won't be disclosed? The budget was drawn up in October. As it stands, we don't have a budget to speak of. We've been considering this with Alexandre and his team. They've worked on building the plan. They have scenarios, and all this will become a budget in October. In any event, the plan's important, as Alexandre said. I mean, there are several focus areas. One, rollout, openings on 30 out-of-town stores. I mean, that's important. That's been endorsed with the teams. We're very soon going to be trialing the new concept, the 300 sq meters.
After the business model has been validated, some 30 stores both directly and in franchise, even if the decision to sell Fnac is not in any way called into question. Of course, we're not managing Fnac in light of that decision. Let me say that with the advent of Alexandre and the putting into place of new management teams at Fnac, it is really part of a long-term perspective, not at all short-term for Fnac. We're really supporting Alexandre and his teams to really transform the business, as it should be to continue to grow and expand in a context, and you must bear this in mind, of consolidation of this sector in Western Europe where Fnac will play a role as a lead consolidator where it is, it's present and it's in its way in the respective markets. Do you wish to add anything to that?
Yes, from Goldman Sachs. Just one question to Mr. Pinault. Could you just give a little bit more color about some of the initiatives that you personally are taking part in in terms of your now role as being Head of the Luxury Division and what's on your to-do list for the next 6- 12 months?
The first thing was to work with Alexi, and again, I'm not alone. I'm working with Alexi on all the brand, was to transform, as I said, the support functions to be more efficient for the luxury group. This has been done. It's called the One Team Project. It's a merger of the corporate structure, PPR, and what was Gucci group structure. This is done already. Now we are, and it will be done by the end of the year, strengthening, gaining efficiency in all those shared services between brands. It's something that we don't talk a lot about, Gucci group, but the level of synergy is quite important now in terms of logistics, in terms of real estate, in terms of product development. This can be, until the analysis we did with Alexi, much more efficient, and we can improve a lot in those sectors.
This will be the first and the second step of the reorganization of the group in terms of support functions. The second point was to review, and we did that with Alexi a few months ago, to review the extension plan for all the brands to speed up that, considering that the market is much better than we expected one year ago. We need to review the rhythm of openings. We have decided to increase and to speed up, true for Gucci, but also for Alexander McQueen, for instance, for Yves Saint Laurent, as I mentioned, in Asia, but of course for all the brands, basically. On some specific topics that we didn't mention, we want to push forward more significantly the Boucheron brand. I can introduce you to Pierre Bouissou who is in front of me here.
He's the new CEO of the brand with a roadmap to strengthen the brand, and particularly in Asia, in terms of product assortment, but also in terms of openings. This different workshop that we've been working on with Alexi is basically around development of the brands, speeding up the opening plans of the brand. In some particular case, like Boucheron, it's to review the brand strategy to push forward the brand in the future. We mentioned it with Sowind. It's also to look and to be very opportunistic in strengthening the whole portfolio, respecting the criteria that we have in terms of size of the brand, potential of the brand, and of course, the complementarity of the brand with the other existing brands in the portfolio. Of course, the price. Thank you, Jean-François. The fact that we took control of Sowind is exactly in that trend.
We were a flipping partner in that brand as a minority shareholder. We're going to be very actively developing the brand starting in August. Responsibility over the executive.
Okay.
Okay. Yes, I think there's a question up at the back. Yes. Yes, one final question, if you'd allow me. Yves Laurent, you said the growth had been mainly driven by couture. What about leather goods, bags, and shoes? Right. Let me just say once again that the couture division actually is couture as opposed to perfumes and cosmetics. That's what we mean. It's the whole lot. Can you maybe give us an idea of what the split is? Leather goods account for about half the revenues of Saint Laurent. If you include shoes and footwear in that, it's even more than that. About two-thirds. Slightly less than that. Thank you. Maybe I can ask her to be an informal auditor. Good luck. If there are no further questions, let me just say once again a few things.
One, we were delighted, Jean-François and myself, to give you a presentation of our numbers for the—and touch good numbers for luxury and lifestyle. As you will have noticed, both our strategic approaches will lead to strong growth. It is true in all the brands, in all the regions, both in luxury and in sports and lifestyle. In luxury, obviously, as you will have noticed, we have a marvelous portfolio of brands which supplement each other. Each and every one of our brands has its own exceptionally good potential. This will lead us to have a possibility to improve the scope and the profitability of each of these brands, and also collectively to improve on the portfolio given this complementarity. In sports and lifestyle, there again, I'm sure we'll have good results. Quite simply because we hope to achieve or maybe overperform the back-on-the-attack plan.
Transition between your island and France has been extremely smooth. All the people are on deck and ready to act now. Things are running smoothly. We do expect to achieve the plan and build around the Puma, under Jochen, a consistent unit. You will have noticed that the first month of acquisition, and it will be the first stage in this process. Those were the first few, the last few messages I wanted to use once again. Thank you very much and have a pleasant holiday.