FinancialsJul 27, 2021
LVMH’s H1 Sales Soar as Tiffany Settles InFinancialsJul 30, 2021
Kering’s Jewelry Houses Rebound in H1
Boucheron and Pomellato performed especially well in the first half after expanding into the Asia-Pacific region.
A “Chromatique” brooch from Kering-owned Boucheron’s new high jewelry collection, featuring a 25.01-carat cushion-cut green Mozambican tourmaline with holographic ceramic and diamonds set in titanium and white gold
Paris—Kering posted strong growth in the first half of its fiscal year, with revenue climbing double digits and exceeding pre-pandemic levels.
The company behind Gucci, Yves Saint Laurent and other high-end brands posted first-half revenue of €8.05 billion ($9.57 billion), a 54 percent increase on a comparable basis and 8 percent higher than the first half of 2019.
In the second quarter, revenue nearly doubled, up 95 percent year-over-year to €4.16 billion ($4.94 billion) and up 11 percent compared with the second quarter of 2019.
“Kering delivered excellent performances in the first half and resumed its trajectory of strong, profitable growth,” said CEO François-Henri Pinault in a press release about the results.
“All of our houses contributed to a sharp rebound in total revenue, which comfortably exceeded its 2019 level, with a remarkable acceleration in the second quarter.”
Strong momentum in North America and the Asia-Pacific region bolstered sales in Kering’s directly operated stores, which account for about 80 percent of its total sales.
First-half sales from these stores, including e-commerce, were up 60 percent year-over-year and 11 percent compared with 2019.
About 17 percent of its stores were closed during the first half of 2021 and 13 percent were closed in the second quarter.
Online sales, however, were “outstanding,” said Kering, with first-half revenue up 78 percent year-over-year, accounting for 14 percent of retail sales. For the second quarter, online sales were up 59 percent.
In North America, e-commerce sales doubled in the first half, up 110 percent, accounting for 24 percent of retail sales.
Wholesale sales were up 30 percent year-over-year in the first half, though sales are down 4 percent in the past two years as the company works to streamline the segment.
The company’s watch and jewelry brands, including Pomellato and Boucheron, fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.
First-half revenue in the “others” division rebounded, totaling €1.48 billion ($1.76 billion), a 65 percent increase year-over-year on a comparable basis. Compared with the first half of 2019, sales were up 22 percent.
“Our jewelry houses all posted sharp rebounds with significant triple-digit increases across channels and geographies in Q2,” said Chief Financial Officer Jean-Marc Duplaix during the company’s earnings call.
First-half retail sales in the “others” division were up 63 percent while wholesale revenue was up 67 percent.
In the second quarter, overall sales in the category doubled, up 111 percent on a comparable basis.
Alexander McQueen and Balenciaga were the category’s top performers alongside the jewelry houses.
Related stories will be right here …
The company behind Gucci, Yves Saint Laurent and other high-end brands posted first-half revenue of €8.05 billion ($9.57 billion), a 54 percent increase on a comparable basis and 8 percent higher than the first half of 2019.
In the second quarter, revenue nearly doubled, up 95 percent year-over-year to €4.16 billion ($4.94 billion) and up 11 percent compared with the second quarter of 2019.
“Kering delivered excellent performances in the first half and resumed its trajectory of strong, profitable growth,” said CEO François-Henri Pinault in a press release about the results.
“All of our houses contributed to a sharp rebound in total revenue, which comfortably exceeded its 2019 level, with a remarkable acceleration in the second quarter.”
Strong momentum in North America and the Asia-Pacific region bolstered sales in Kering’s directly operated stores, which account for about 80 percent of its total sales.
First-half sales from these stores, including e-commerce, were up 60 percent year-over-year and 11 percent compared with 2019.
About 17 percent of its stores were closed during the first half of 2021 and 13 percent were closed in the second quarter.
Online sales, however, were “outstanding,” said Kering, with first-half revenue up 78 percent year-over-year, accounting for 14 percent of retail sales. For the second quarter, online sales were up 59 percent.
In North America, e-commerce sales doubled in the first half, up 110 percent, accounting for 24 percent of retail sales.
Wholesale sales were up 30 percent year-over-year in the first half, though sales are down 4 percent in the past two years as the company works to streamline the segment.
The company’s watch and jewelry brands, including Pomellato and Boucheron, fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.
First-half revenue in the “others” division rebounded, totaling €1.48 billion ($1.76 billion), a 65 percent increase year-over-year on a comparable basis. Compared with the first half of 2019, sales were up 22 percent.
“Our jewelry houses all posted sharp rebounds with significant triple-digit increases across channels and geographies in Q2,” said Chief Financial Officer Jean-Marc Duplaix during the company’s earnings call.
First-half retail sales in the “others” division were up 63 percent while wholesale revenue was up 67 percent.
In the second quarter, overall sales in the category doubled, up 111 percent on a comparable basis.
Alexander McQueen and Balenciaga were the category’s top performers alongside the jewelry houses.
The watch brands and menswear company Brioni “registered very encouraging rebounds,” said Kering.
Boucheron and Pomellato found success in Asia-Pacific, particularly in mainland China, following an expansion in the region.
Boucheron just released its new high jewelry collection, “Holographique.”
Qeelin had a “truly spectacular” first half, said Duplaix, tripling its first-half 2019 revenue.
Looking at watches, revenue was up triple digits in the second quarter.
“Ulysse Nardin’s quest for exclusivity is paying off, while Girard-Perregaux is consolidating its turnaround and starting to reap benefits from its collaboration with Aston Martin,” Duplaix said.
By region, second-quarter sales in North America nearly quadrupled, up 263 percent year-over-year.
Sales in Western Europe were up 71 percent while sales in Asia Pacific climbed 53. In Japan, quarterly sales nearly doubled, up 92 percent.
For the rest of the world, sales more than quadrupled, up 322 percent.
Kering did not provide specific guidance for the fiscal year, but said that “though it remains highly dependent on developments in the health situation and associated restrictions across countries and regions, the luxury market has posted a significant rebound since the beginning of the year.”
More on Financials
The Latest
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
