French luxury goods firm PPR has posted a 0.1% rise in fiscal 2008 income as sales grew 6% despite declining customer demand.

PPR generated revenues of EUR20.2bn (US$25.7bn), up 5.8% compared to 2007, and boosted net income to EUR875m.

The company saw its e-commerce revenues increase 10% to EUR1.9bn.

PPR CEO François-Henri Pinault said: "PPR posted satisfactory operating and financial performances in 2008, despite deteriorating market conditions quarter after quarter.

"Our group has thus demonstrated a remarkable ability to respond and adapt to sudden and profound changes in its environment."

The company, whose brands include Fnac, Redcats Group, Puma and Gucci Group, said recurring operating income amounted to EUR1.7bn, up by more than 5% compared to last year.

This increase was partly driven by 9% growth in recurring operating income at Gucci Group brands.

Non-recurring operating income and expenses resulted in a net expense of EUR361m, PPR said, comprising of asset impairment costs of EUR237m and restructuring costs of EUR128m.

Pinault added: "PPR will capitalise on its many assets: brand strength, geographical complementarity, presence in the most promising emerging markets, web leadership, as well as financial solidity and budgetary discipline.

"In 2009, the group will intensify its action plans so as to build on its competitive advantages and strengthen its business lines."