Retail group Pinault-Printemps-Redoute (PPR) SA has suffered a 59 per cent drop in full-year net profit for 2003.

The Paris-based company, which holds a 68 per cent stake in luxury goods giant Gucci Group NV, posted net profit of EUR645 million on EUR645 billion in sales for the 12-month period.

Operating profit at the company, meanwhile, fell 29 per cent year-on-year to EUR1.30bn.

Despite the downturn, net profit beat analysts' expectations and operating profit was in line with the consensus.

PPR is currently preparing for a US$2.5bn buyout of the remaining 32 per cent of Gucci.