Financials

Kering’s Jewelry Brands a Bright Spot in Tough Q1

FinancialsApr 24, 2024

Kering’s Jewelry Brands a Bright Spot in Tough Q1

The luxury titan posted declining sales, weighed down by Gucci’s poor performance.

Pomellato Pom Pom Dot necklaces
Necklaces from Kering-owned Pomellato’s new “Pom Pom Dot” collection. Kering posted an 11 percent year-over-year drop in sales in Q1, though Pomellato and Boucheron had a solid quarter.
Paris—Kering posted declining sales in the first quarter as its star brand Gucci continues to struggle.

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.

 Related stories will be right here … 

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

Sotheby’s New York building
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax Fraud

The auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.

Kering logo
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability Focus

The four finalists will present their pieces at the 2025 JCK Las Vegas show.

Model wearing pieces from Camera Oscura collection
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New Collection

The “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Columbia Gem House “Pebbles to Pines” fundraiser
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation Efforts

The money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.

Weekly QuizNov 14, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
The jewelry symposium 2025
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship Applications

The event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.

Stock image of police cars with lights on
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry Store

Local reports identified the woman as the wife of the jewelry store owner.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Tsar Ferdinand I Bulgaria colored diamond pin and emerald diamond ring
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry Sale

A collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.

Trove NYC flagship exterior
MajorsNov 19, 2024
Trove Opens First US Flagship in NYC

The Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.

Snoop Dogg and Carolyn Rafaelian
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love

“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.

Helzberg CEO Brad Hampton
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s Rebrand

Hampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.

Andrea Jose jewelry
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry Week

The group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.

Dolly Parton and Kendra Scott
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra Scott

The collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.

IGI Expressions
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition Returns

This year’s theme asks designers to take inspiration from classic fairy tales.

New York Comic Con Javits Center crowd
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic Con

Senior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.

Marie Lichtenberg and Raiz’in collection
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ Designs

The latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.

Citizen 100th Anniversary Limited Edition #1 Pocket Watch
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket Watch

No. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.

My Next Question store security episode
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure

On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.

18th century diamond necklace
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M

Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.

Saks Fifth Avenue Holiday Window
MajorsNov 14, 2024
Saks Fifth Avenue Cancels Holiday Light Display

Instead of its usual elaborate display, the store will illuminate its façade and frame the windows to highlight its flagship’s architecture.

Grand Seiko store in Honolulu Hawaii
WatchesNov 14, 2024
Grand Seiko Partners With Ben Bridge on First Hawaii Store

The new Grand Seiko boutique is located in Honolulu’s Waikiki neighborhood.

Travelers on Gem Legacy Adventures Trip
SourcingNov 13, 2024
Gem Legacy Adventures Announces 2025 Trip

Eleven spots are available for travelers to visit Northern Tanzania and Southern Kenya from July 25 to Aug. 4.

Aga Khan Emerald
AuctionsNov 13, 2024
Aga Khan Emerald Sells for $8.8M, Sets Record

The emerald brooch-turned-pendant returned to auction after 55 years, setting a world record for most expensive emerald sold at auction.

17.97-carat Burmese ruby ring with pear-shaped diamonds
AuctionsNov 13, 2024
‘Exceptional’ Burmese Ruby Ring Tops $5M at Auction

Phillips also sold a 1.21-carat fancy red diamond dubbed the “Red Miracle” for more than $1 million at its jewelry auction in Geneva.

Ariana Grande and Anya Taylor-Joy
MajorsNov 13, 2024
Ariana Grande, Anya Taylor-Joy Star in Holiday Jewelry Campaigns

From Swarovski to Tiffany & Co., jewelry retailers are enlisting celebrities to highlight their holiday offerings.

2024-2025 Royal Chain Catalog
MajorsNov 13, 2024
Royal Chain’s New Catalog Is Out Now

The 2024-2025 book introduces hundreds of new designs.

×

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