Kering’s Jewelry Brands a Bright Spot in Tough Q1
The luxury titan posted declining sales, weighed down by Gucci’s poor performance.

The luxury titan reported first-quarter revenue of €4.5 billion ($4.8 billion), down 11 percent year-over-year (10 percent on a comparable basis).
The company had warned investors in a preliminary results announcement in March about its expected revenue drop, attributing it to a steep sales drop at Gucci.
The brand performed poorly, particularly in the Asia-Pacific region, with first-quarter revenue falling 21 percent (18 percent on a comparable basis).
“Kering’s performance worsened considerably in the first quarter,” said Kering CEO François-Henri Pinault.
“While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our houses, starting with Gucci, exacerbated downward pressures on our topline.”
However, its jewelry houses, which include Boucheron and Pomellato, put on a strong performance, said Kering, with revenue up double digits in the quarter.
The company’s jewelry brands fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.
For the first quarter, revenue in the division totaled €824 million ($882 million), down 7 percent year-over-year (6 percent on a comparable basis).
Boucheron and Pomellato performed especially well in the Asia-Pacific region and Japan, said Kering Chief Financial Officer Armelle Poulou on the company’s earnings call Tuesday afternoon.
Boucheron led the charge as it celebrated the 20th anniversary of its “Quatre” collection, while Pomellato debuted its “Pom Pom Dot” reversible jewels collection.
Qeelin continued to expand its presence, opening four stores.
Revenue from Kering’s directly operated stores, which includes its e-commerce sites, was down 11 percent year-over-year on a comparable basis, impacted by lower foot traffic.
Revenue in the wholesale and “other” segment was down 7 percent on a comparable basis, as the company streamlines its distribution.
Looking at its performance by region, Kering’s sales in North America fell 11 percent year-over-year in the first quarter.
North America was Kering’s third-largest market by revenue percentage in the first quarter, accounting for 22 percent of total revenue, up from 21 percent in Q1 2023.
Japan saw the strongest growth with quarterly revenue up 16 percent.
The Asia-Pacific region saw the steepest decline, down 19 percent, which Kering attributed to “challenging, volatile market conditions.”
Sales in Western Europe were down 9 percent.
Kering operated 1,781 stores as of Q1, up from 1,771 at the end of the previous fiscal year.
Looking to the year ahead, the company expects it will continue to struggle in the first half.
“The first half of the year is proving even tougher than we expected,” said Poulou.
Kering will continue to invest in its brands, she said, but will be more selective and demanding about a return on investment.
The company is expecting a sharp drop in first-half profit, forecasting a decline of 40 to 45 percent in first-half operating income.
“All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth,” said Pinault.
The Latest

The singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.

The bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.

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

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

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


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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

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.

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

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

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