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By Astrid Wendlandt

PARIS, July 31 (Reuters) – French luxury and retail group PPR weathered a difficult market to beat profit forecasts on Friday, and said its cost-cutting efforts were priming it to take early advantage of any recovery.

The retailer behind Gucci Group said operating profit was 707 million euros in the six months to June 30, down from 743 million euros a year ago, but well ahead of the average forecast of 620 million in a Reuters poll of analysts.

At 0924 GMT, PPR shares were up 10 percent at 78.21 euro.

The company said cost-cutting efforts would start paying off this year.

“These effects will be felt in the second half and particularly next year,” PPR Chairman and Chief Executive Francois-Henri Pinault told a press conference. “The slightest recovery will have a significant impact in terms of result.”

Citi said it expected PPR consensus figures for the year to be nudged up slightly, but given the benefits of easier comparatives it warned of upside risks to current forecasts.

The group has closed three Conforama shops in Spain and four in Italy since the beginning of the year and a Fnac outlet in Basel, in Switzerland.

PPR is fulfilling its plan to cut 672 positions at its mail order business La Redoute, 800 at Conforama and 400 at Fnac.

Pinault said PPR was not planning to make any acquisitions or disposals in the current environment and that it wanted to focus on cutting its debt.

“For the next 12-18 months, acquisitions will not be a priority for the group,” he said.

The operating margin of the Gucci brand, which accounts for the bulk of profits at the luxury unit, was down 1.1 percentage points at 26 percent during the first half, PPR’s Finance Director Jean-Francois Palus said.

Gucci Group, which also owns fashion brands Yves Saint Laurent and Balenciaga, generated an operating profit of 305 million euros on revenue of 1.642 billion euros, down 3.7 percent at comparable exchange rates.

JAPAN, U.S. WEAKER

By contrast, Italian rival fashion group Tod’s saw first-half sales rise 2 percent at constant exchange rates, with shoe sales up 7.7 percent on a reported basis amid a “highly challenging environment”.

Palus said Gucci’s leather goods sales in the second quarter at its retail outlets rose 6 percent at constant exchange rates, compared with a 21 percent jump in leather goods revenue from chic handbag maker Hermes during the period.

PPR’s first-half figures “confirm our view of the relative attractiveness of soft-luxury and retail-exposure in the cycle for luxury goods,” S&P Equity Research said.

Palus said luxury sales in the second quarter fell 22 percent in Japan at comparable exchange rates and were down 11 percent in the United States, hit by tough wholesale trading.

In Europe, second-quarter luxury revenue rose 1 percent on the same basis, he added.

PPR’s German Puma unit, the world’s third-largest sports goods maker, posted a 6.6 percent drop in first-half recurring operating income and a 3.8 percent fall in comparable sales due to a lack of major sporting events.

PPR first-half sales overall were down 5.9 percent at comparable exchange rates at 9.235 billion euros, above estimates of 9.16 billion based on a Reuters poll of nine analysts.

But PPR stuck to a custom of not giving a full-year outlook.

With August about to swelter down on us, the next-best thing to wearing nothing at all is white.

For men, that means pulling off the look in a way that’s smooth, sporty and sexy. Think more Richard An Officer and a Gentleman Gere than Mr. Clean.

Designers and trend analysts agree there are exceptions to the old rules regarding white, lifting the neutral mood with everything from bright hues to gingham and stripes. Most are also keen on keeping white going well past Labor Day.

We checked in with four experts: fashion designer

Tommy Hilfiger; Glen Hoffs, Brooks Brothers fashion director; Alan Flusser, menswear author and designer; and Tom Julian, a trend expert and brand consultant, all who shared their savvy sartorial tips on how guys can — and should — dress in white for an end-of-summer look in this season of sizzle.

Q: What are the new rules for wearing white in 2009?

Hilfiger: There are no rules. There is summer white and winter white. I love winter white as a soft, neutral option for winter. I think white is a great color for guys — it’s clean and simple. I’ve always incorporated white into my collections and personal wardrobe. I’m a big fan of the crisp-white-shirt-and-jeans look.

Hoffs: The new rules for white are more about what it’s mixed with rather than when to wear it. Wearing white with a dark color, say a white pant with a black polo or turtleneck, can be appropriate in any season. Likewise the shoe color can make a difference depending on the season. A general rule would be the lighter the shoe, the more appropriate it would be for summer.

Q: How do you dress up a white blazer?

Hilfiger: With a relaxed jean, a vintage tee and leather flip-flops. It looks great as long as you pair it with another color or pattern. You don’t want to wear all white and look like a waiter.

Julian: It works best for a contemporary dresser with a trim physique and a confident attitude. It looks best paired with a great purple or lilac-striped shirt. Dark denim is most appropriate and helps to balance out the starkness. On the feet I prefer sandals that are distinct, crafted and substantial.

Hoffs: It’s a great adaptable item in your wardrobe. Wear it with jeans, a gingham shirt and a boat shoe for a casual occasion, or dress it up with a white shirt, navy tie and navy trouser. It could also be fun to try the white blazer with a seersucker pant or short and a polo shirt.

Flusser: To give it real class, it has to be a slightly bone color. Sheer white is very stark. The only pure white that I could think of that might be chic is something in silk and that already makes a jacket pretty dressy; so wear it with jeans, a white shirt and monogram shoes.

Q: How do you complete the look with a white suit?

Hilfiger: White suits look fantastic with contrasting colors. I love the look of a navy shirt with a plaid belt offset by a beautiful brown loafer.

Julian: White really does go with anything — from black to blue to the earth tones. I’d encourage looking at the right shoes. For the laid-back man, Converse sneakers. For comfort dressers, the driver shoe. And for the dapper dresser, I am partial to a long, lean loafer in suede or leather.

Hoffs: I like a white suit with a blue-background shirt that has a white stripe in it. Pair that with a colorful tie in a conversational print for a summer daytime wedding or with a darker tie for a dressier occasion.

Q: How can you dress white jeans up or down?

Hilfiger: They’re a great summer alternative to khakis and jeans, which you typically wear all winter. And while all khaki might look a little too safari, a khaki button-down shirt with white jeans is very crisp for summer.

Julian: One must still have the right physique and attitude. Black is always slimming, but white is not! I’d encourage wearing them with more earth-tone hues and in the washed-vintage look. I don’t recommend white jeans for formal events or for casual Friday.

Hoffs: The great thing about white jeans is just how flexible they can be. Pair them with a navy blazer or a cardigan and a tie and wear them for casual Friday. When paired with a patch madras sport shirt and deck shoe, you have a more casual look. The white jean can be worn just like a khaki and update the whole look of an outfit.

Flusser: Wear white jeans with a very good broadcloth white button-down shirt, a sport jacket, a stripe ribbon belt with a D-ring and Puma sneakers or Gucci-type loafers.

Q: Any other thoughts?

Hilfiger: Don’t be afraid to wear white. Even when it gets dirty, it’s about being relaxed and playful, so it’ll work anyway.

Julian: White looks flattering on African-Americans and Latin-Americans. But it does not make all Caucasians look that ideal.

Hoffs: White, at the moment, is a fashion color — so the more fashion-conscious guy is going to want to wear it outside of summer. But white is a natural reflector of light, keeping the body cooler, especially in bright light.

Flusser: Take a red ostrich belt and a red-and-blue handkerchief and wear all white. Use a pop of color to express your personality. White is a blank slate.