Boucheron, Pomellato Post ‘Outstanding' Year for Kering
The luxury titan’s revenue was up 15 percent year-over-year, though sales slipped in the fourth quarter.
Its jewelry houses, which include Boucheron and Pomellato, had an “outstanding” year, noted the company.
Here are four important takeaways from the luxury titan’s most recent earnings report.
It was a good year for Kering, but a rough fourth quarter.
The luxury conglomerate owns several high-end brands, including Gucci and Yves Saint Laurent, as well as jewelry brands Boucheron and Pomellato.
Kering posted full-year revenue of €20.35 billion ($21.75 billion), up 15 percent year-over-year.
Revenue from its directly operated stores, which includes its e-commerce sites, was up 10 percent year-over-year on a comparable basis, driven by gains in Western Europe and Japan.
However, in the fourth quarter, revenue slipped 2 percent to €5.28 billion ($5.65 billion).
Kering noted mixed performances among its houses and regions.
Its star brand, Gucci, saw sales increase 8 percent for the full year, but fall 14 percent in the fourth quarter. Sales at the brand’s stores were down 15 percent, “significantly affected” by the COVID-19 situation in China during the quarter.
“All our houses posted record revenues and contributed to higher operating income in 2022. But these good performances were not uniformly up to our ambitions and potential,” said CEO François-Henri Pinault.
“Beyond the challenges some of our houses faced, notably towards the end of the year, we are convinced that we are pursuing the right strategy for the long term.”
Jewelry sales were strong in 2022.
The company’s jewelry brands fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.
Its jewelry portfolio consists of Boucheron, Pomellato, DoDo, and Qeelin.
For the full year, revenue in the division totaled €3.87 billion ($4.14 billion), an 18 percent increase.
Growth was driven by Kering’s directly operated retail network, with sales up 27 percent on a comparable basis. Wholesale revenue slipped 6 percent.
In the fourth quarter, revenue in the division fell 3 percent to €951 million ($987 million).
In its directly operated stores, quarterly sales were up 2 percent, with double-digit growth in Western Europe and Japan. Wholesale revenue fell 26 percent.
“Kering’s jewelry houses once again achieved outstanding progress and reached significant milestones. Boucheron posted firm, steady growth, while Pomellato continued to perform well in Western Europe and Japan. Finally, Qeelin grew at a rapid pace,” said the company.
Sales in North America were on the rise.
North America is Kering’s second-largest market, tied with Western Europe, and accounts for 27 percent of its annual revenue.
In 2022, sales in North America were up 5 percent year-over-year.
Asia-Pacific is the company’s largest market, comprising 33 percent of revenue, though sales in the region were down 8 percent for the full year.
Western Europe saw the strongest growth with revenue up 36 percent this year followed by Japan at 25 percent.
Kering has a positive outlook for 2023 despite an “uncertain” environment.
Though Kering did not share specific fiscal guidance for the year ahead, its CEO expressed confidence in the company’s performance.
Kering is able to “nurture the desirability and exclusivity of our brands, so they all achieve market positions commensurate with their unique heritage and recognized creativity,” said Pinault.
“In an environment that remains uncertain, I have no doubt that 2023 will be another year of success for our houses and of growth for our group.”
Kering said its two main goals for the year is to maintain its profitable growth trajectory and affirm its status as an influential group in the luxury world.
The Latest
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
He is remembered for his charisma, passion, integrity, kindness, and wit.
The retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.
The bridal collection consists of 35 engagement rings and seven wedding bands.
The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.