Financials

Kering’s Jewelry Brands Shine in H1

FinancialsJul 28, 2023

Kering’s Jewelry Brands Shine in H1

The luxury titan also announced it acquired a 30 percent stake in Italian luxury brand Valentino and named a new CFO.

Diamond and emerald earring from Kering’s “New Maharajahs” high jewelry collection
Pictured here is a diamond and emerald earring from Kering-owned Boucheron’s “New Maharajahs” high jewelry collection. Kering’s jewelry brands put on a strong performance in its recent first-half results.
Paris—Kering’s jewelry brands were top performers in the luxury conglomerate’s recent first-half results.

Sales from its star brand Gucci, however, have continued to falter.

Kering has set its sights on another luxury brand, recently acquiring a 30 percent stake in Valentino with the option to raise the stakes to 100 percent by 2028.

Here are four important takeaways from Kering’s most recent earnings report.

Kering posted muted growth.

Kering reported second-quarter revenue of €5.06 billion ($5.57 billion), up 2 percent year-over-year.

For the first half, revenue totaled €10.14 billion ($11.15 billion), also up 2 percent year-over-year.

"In the first half, we pursued our investments in our Houses’ desirability and exclusivity. While engaging in critical forward-looking initiatives, we maintained a high level of profitability,” said CEO François-Henri Pinault in a statement.

Sales for Gucci, the luxury conglomerate’s star brand that has struggled in recent quarters, were down 3 percent in the second quarter and down 1 percent for the first half.

Revenue from Kering’s directly operated stores, which includes its e-commerce sites, was up 4 percent year-over-year on a comparable basis in the second quarter, driven by sales in Asia Pacific and Japan.

Growth in Western Europe was “solid” in the quarter, said Kering, while sales fell in North America.

Wholesale sales and other revenue were down 1 percent in the second quarter.

The company did not provide financial guidance for the year ahead, citing “an environment of ongoing economic and geopolitical uncertainty in the near term.”

LVMH echoed a similar sentiment in its recent results.

Jewelry sales were a standout in the “other houses” division.

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.

Revenue in the division totaled €966 million ($1.06 billion) in the second quarter, down 2 percent year-over-year. For the first half, revenue in the category slipped 5 percent to €1.86 billion ($2.04 billion).

Its jewelry houses, however, “maintained their strong growth trajectory, each delivering double-digit growth,” said Kering.

Boucheron was “leading the way,” said Kering, adding that revenue growth at Pomellato and DoDo was “extremely robust.”

“Qeelin benefited from the rebound in the Chinese market but was hampered by the slowdown in South Korea, given the very high base of comparison,” the company said.

On an earnings call Thursday afternoon, Deputy CEO Jean-Marc Duplaix said Kering was “extremely pleased” by the continued growth of its jewelry brands.

“Our jewelry houses were up strong double digits in both channels, reflective of the appeal of their creations and investments we have made to broaden their visibility,” he said.

Duplaix was formerly the chief financial officer, a role that will be passed on to Armelle Poulou, the former director of corporate finance, treasury, and insurance, on Sept. 1, the company announced Friday morning.

Sales in the overall division in Kering’s directly operated retail network rose 9 percent on a comparable basis in the second quarter and 8 percent in the first half.

Wholesale revenue in the first half fell 27 percent due to the streamlining of its wholesale distribution. Kering also attributed the decline to “the mixed American market.”

 Related stories will be right here … 

Sales in North America were down double-digits.

Kering’s sales in North America fell 23 percent year-over-year in the second quarter.

“After several quarters of strong growth until mid-2022, North America is the region where business levels are suffering most from weaker demand among the most aspirational customers and from American tourists shifting their purchases to other geographies, where they can buy at lower prices,” said Kering.

North America was Kering’s third-largest market by revenue percentage in the first half, accounting for 22 percent of total revenue, down from 27 percent in Q2 2022.

Japan saw the strongest growth in Q2 with revenue up 26 percent followed by Asia Pacific at 22 percent, and the rest of the world at 5 percent. Sales in Western Europe rose 4 percent year-over-year.

Kering operated 1,694 stores as of H1, adding a net 35 stores in the quarter.

Kering now has a stake in another luxury brand.

Following the release of its financial results, Kering announced it had acquired a stake in an Italian luxury brand Valentino.

Kering and Qatar-based investment fund Mayhoola entered into an agreement that gives Kering a 30 percent stake in Valentino for €1.7 billion.

Founded in Rome in 1960 by Valentino Garavani, the brand is one of Italy’s best-known luxury brands. 

Valentino currently has 211 directly operated stores in more than 25 countries with revenue of €1.4 billion ($1.5 billion) in 2022.

The agreement includes an option for Kering to acquire 100 percent of the share capital of Valentino no later than 2028.

The transaction, which is expected to close by the end of the year, is part of a strategic partnership between the two, said Kering, which could lead to Mayhoola becoming a Kering shareholder.

“I am impressed with the evolution of Valentino under Mayhoola ownership and very delighted that Mayhoola has chosen Kering as its partner for the development of Valentino, a unique Italian house that is synonymous with beauty and elegance,” said Kering’s Arnault.

Rachid Mohamed Rachid, CEO of Mayhoola and Chairman of Valentino, added “Valentino is one of the ultimate Italian luxury authorities and we are very happy to welcome Kering as a strategic partner for the future development of the Maison de Couture.”

The Latest

Stock image of handcuffs
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry Heist

The heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.

Marie-Thérèse Pink diamond and Blue Belle sapphire necklace
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’s

The 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week. 

Caryl Capeci Starboard Cruises
EditorsJun 18, 2025
Q&A: Caryl Capeci Dives Into Cruise Jewelry Shopping

The Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Gresham grasshopper ring
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56K

The historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.

Weekly QuizJun 12, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Kirk Kara fine jewelry
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New Jewels

To mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.

Gemfields 36 Carat Ruby
SourcingJun 18, 2025
Gemfields Sells 36-Carat Rough Ruby

The gemstone is the third most valuable ruby to come out of the Montepuez mine, Gemfields said.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Alex Brown
TechnologyJun 18, 2025
Alex Brown Named President of Smithee Group

Founder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.

Jade Ruzzo Gloria Collar
EditorsJun 17, 2025
The Best New Jewelry from Couture 2025, Part 1

Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.

Jewelry industry author, speaker, and sales expert Peter Smith
ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?

If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.

Selection of jewelry from Sotheby’s New York High Jewelry sale
AuctionsJun 17, 2025
Colored Gemstones, Signed Jewels Shine in Sotheby’s High Jewelry Sale

The top lot was a colorless Graff diamond, followed by a Burmese ruby necklace by Marcus & Co.

Amanda Gizzi, Jewelers of America’s SVP of corporate affairs
MajorsJun 17, 2025
Amanda Gizzi Gets a Promotion at JA

Gizzi, who has been in the industry since 2001, is now Jewelers of America’s senior vice president of corporate affairs.

Kering CEO Luca de Meo
MajorsJun 17, 2025
Kering Names Automotive Exec as Its New CEO

Luca de Meo, a 30-year veteran of the auto industry, will succeed longtime CEO François-Henri Pinault.

Botswana Minster of Minerals and Energy Bogolo Joy Kenewendo
EditorsJun 16, 2025
Q&A: Bogolo Joy Kenewendo on Mining, Tariffs, and the Energy of Las Vegas

Following visits to Vegas and New York, Botswana’s minerals minister sat down with Michelle Graff to discuss the state of the diamond market.

Greenwich Street Jewelers Your Love Has the Perfect Ring Campaign
IndependentsJun 16, 2025
Greenwich St. Jewelers Launches Commitment Campaign Celebrating LGBTQ+ Couples

The “Your Love Has the Perfect Ring” campaign showcases the strength of love and need for inclusivity and representation, the jeweler said.

Ivette Nersesyan-Stephanopoulos
MajorsJun 16, 2025
Ivette Nersesyan-Stephanopoulos Joins Tiffany & Co.

The former De Beers executive is the jewelry house’s new director of high jewelry for the Americas.

New York Liberty Nyara Sabally Catbird campaign
MajorsJun 16, 2025
Catbird Names WNBA Star Nyara Sabally as Its New Brand Ambassador

The New York Liberty forward is the first athlete to represent the Brooklyn-based jewelry brand.

Robinson Pelham Fruits of Love Pear Earrings
CollectionsJun 13, 2025
Piece of the Week: Robinson Pelham’s Pear Earrings

Take a bite out of the 14-karat yellow gold “Fruits of Love Pear” earrings featuring peridots, diamond stems, and tsavorite leaves.

Three diamonds with diagrams
Events & AwardsJun 13, 2025
AGA to Host ‘Diamonds From Mine to Market’ Education Conference

The one-day virtual event will feature speakers from De Beers, GIA, and Gemworld International.

Ella Sophie
EditorsJun 12, 2025
15 Questions With Jewelry Photographer Ella Sophie

The California-based creative talks jewelry photography in the modern era and tackles FAQs about working with a pro for the first time.

A pink gold Patek Philippe perpetual calendar chronograph Ref. 2499
AuctionsJun 12, 2025
Vintage Patek Philippe From the ‘50s Sells for $4M at Sotheby’s

Al Capone’s pocket watch also found a buyer, though it went for less than half of what it did at auction four years ago.

Gabriel Love Foundation Logo
Events & AwardsJun 12, 2025
Gabriel Love Foundation Introduces Scholarship Honoring Elias Gabriel

The foundation has also expanded its “Stronger Together” initiative with Jewelers for Children.

Celine Assimon
AuctionsJun 12, 2025
Former De Beers Exec Celine Assimon Joins Bonhams

Assimon is the auction house’s new chief commercial officer.

De Beers CEO Al Cook speaking at JCK Las Vegas 2025
EditorsJun 11, 2025
Q&A: Al Cook on Differentiating Natural Diamonds, Traceability, and Tariffs

The De Beers Group CEO discusses the company’s new “beacon” program, the likelihood diamonds will be exempt from tariffs, and “Origin.”

Pandora Las Vegas ribbon cutting ceremony
MajorsJun 11, 2025
Pandora Bets on Las Vegas for First North American Flagship

The Danish jewelry giant hosted its grand opening last weekend, complete with a Pandora pink roulette wheel.

Tiffany Stevens
GradingJun 11, 2025
Tiffany Stevens Exits IGI, Lab Appoints New Board Leader

Industry veteran Anoop Mehta is the new chairman and independent director of the IGI board.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy