Net sales totalled €880.7 million, up 7.3 percent. This included a positive currency impact of €2.6 million, because the Chinese yuan appreciated.
Like for like*, Group sales edged up 0.5 percent (down 1.6 percent in France, up 14.1 percent in China and up 7.5 percent in other countries).
Gross profit At €539.4 million vs. €485.3 million in 2004, gross profit rose 11.1 percent. Gross margin was 61.2 percent vs. 59.1 percent in 2004. The increase resulted, in particular in Europe, from improvement in sourcing, reduced discounting and improvement in inventories (positive impact of €9.9 million of the change in net provisions for impairment of inventories between 2004 and 2005).
Operating profit Operating expenses not included in gross profit totalled €469.7 million vs. €446.4 million in 2004. On the one hand, certain expenses rose, primarily because of new store openings (463 including 381 in China) and rent and salary expenses rose. On the other hand, depreciation, net provisions for impairment in value and other income and expense totalled €30.5 million vs. €41.4 million in 2004.
As a result, profit from ordinary activities totalled €69.7 million vs. €38.9 million in 2004, representing a rise of 79 percent.
After a non-recurring charge of €3.3 million related to the cost-cutting programme, operating profit was €66.4 million vs. €38.0 million in 2004.
Other income statement items: - The net financial charge was €8.0 million;
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