Financials

Kering’s Jewelry Brands ‘More Resilient’ Than Other Luxury Goods in Q3

FinancialsOct 24, 2024

Kering’s Jewelry Brands ‘More Resilient’ Than Other Luxury Goods in Q3

Sales fell 15 percent for the luxury conglomerate in the third quarter, led by a 26 percent drop in sales for flagship brand Gucci.

Jewelry from Boucheron
A model wears pieces from “The Power of Couture,” the 24-piece high jewelry collection Boucheron released in January. Boucheron is part of Kering, and the luxury conglomerate saw sales fall 15 percent in the third quarter.
Paris—Kering said faltering consumer confidence, lower in-store traffic, and a “soft summer” in Western Europe were among the factors impacting sales in the third quarter.

The Paris-headquartered luxury conglomerate reported Wednesday that sales totaled €3.79 billion ($4.21 billion), down 15 percent year-over-year as reported (16 percent on a comparable basis). 

Year-to-date, Kering’s sales are down 12 percent both as reported and on a comparable basis.

Sales at the stores Kering owns and operates fell 17 percent year-over-year on a comparable basis, while wholesale and other revenue dropped 12 percent.

Region-wise, sales fell most sharply in Asia-Pacific, impacted by the drop-off in luxury sales in China.

Sales in the region fell 30 percent in Q3 for Kering and were down 15 percent in North America and 11 percent in Western Europe.

Sales increased in Japan (up 3 percent) and other countries (up 2 percent).

North America now accounts for 23 percent of Kering’s total sales, up 1 percent year-over-year.

Earlier this year, Kering appointed a new head of Kering Americas. Ewa Abrams was promoted from general counsel to president of Kering Americas, effective Aug. 1. 

 Related stories will be right here … 

Kering owns Pomellato, Dodo, Qeelin, and Boucheron, which opened its first U.S. store in September. The 3,900-square-foot store is located on Madison Avenue. 

The brands are part of the company’s Other Houses division, which also includes Alexander McQueen and Brioni.

Sales in Other Houses also dropped 15 percent (14 percent on a comparable basis).

On the company’s earnings call Wednesday, Kering Chief Financial Officer Armelle Poulou said it was a “challenging” quarter for the brands in this division, though its jewelry brands fared better than its fashion brands.

“Our jewelry houses were more resilient, though they were not immune to the overall trend [of a slowdown in sales,]” she said.

Among all Kering’s divisions, Gucci posted the steepest decline in sales in the third quarter. Sales for the Italian fashion house dropped 26 percent as reported (25 percent on a comparable basis.)

Sales declined 13 percent as reported (12 percent on a comparable basis) for Saint Laurent.

Bottega Veneta’s sales increased 4 percent (5 percent on a comparable basis), with sales particularly strong in the United States, Kering said.

Known mainly for its bag and its shoes, the Italian brand has a pair of drop earrings that sell out consistently, aided by their popularity among celebrities and influencers.

Harper’s Bazaar U.K. recently described the earrings as a “modern icon.”

Kering’s eyewear division also had a positive quarter, with sales up 4 percent on both a reported and comparable basis. 

In reporting its third-quarter results, Kering warned that the larger-than-expected slowdown in sales in Q3 and the “major uncertainties” likely to impact demand among luxury consumers in the coming months could result in a nearly 50 percent decline in operating income. 

The company projects its 2024 operating income could total €2.5 billion ($2.7 billion), down from €4.75 billion ($5.13 billion) in 2023. 

“With discipline and determination, we are executing a far-reaching transformation of the group, and at Gucci in particular, at a time when the whole luxury sector faces unfavorable market conditions,” Kering Chairman and CEO François-Henri Pinault said in a press release. 

“This severely impacts our performances in the short term. Our absolute priority is to build the conditions for a return to sound, sustainable growth, while further tightening control over our costs and the selectivity of our investments.” 

The Latest

Jacquie Aiche Lizzie Bracelet
CollectionsNov 05, 2024
Jacquie Aiche is Hosting an Online Treasure Hunt

One lucky winner will receive a “Lizzie” diamond bracelet.

Samantha Larson
IndependentsNov 05, 2024
Long's Jewelers Names New Director of Buying

Samantha Larson has joined the Boston-based retailer.

Emerging Jewelers Accelerator Program logo
Events & AwardsNov 05, 2024
JA, BIJC Now Accepting EJAP Applications for 2025

The Emerging Jewelers Accelerator Program will guide retail jewelry entrepreneurs through an eight-month educational curriculum.

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.

Tiffany & Co. x CFDA Jewelry Designer Award
Events & AwardsNov 05, 2024
Tiffany & Co., CDFA Announce Design Award Finalists

Ten chosen designers will receive mentorship and participate in a design contest for the Tiffany & Co. x CFDA Jewelry Designer Award.

Weekly QuizOct 31, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Dana J. Lorberg
MajorsNov 04, 2024
Jewelers Mutual Appoints Mastercard Exec to Its Board

Dana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.

FBI robbery surveillance photo
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing Robbers

The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.

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.

Models wearing Black Sand Pebble ring and Surf bracelet
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into Diamonds

The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.

Jaeger-LeCoultre Reverso Tribute watch
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-Long

The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.

Artist Reena Ahluwalia “Pristine” painting
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJA

The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.

Gunderson’s Jewelers in Omaha, Nebraska
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in Nebraska

The new store features a custom design studio and a bridal salon.

Sydney Evan x Wicked “Spell Book” coin charm
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’

Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.

National Jeweler columnist Peter Smith
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional Selling

Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.

Annie E. Doresca, Grant Mobley, Alexis Padis, Terry Chandler
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ Gala

The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”

Instore show 2025
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago Area

The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.

Constance Polamalu
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown Diamonds

The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.

Gem Awards New York City
Events & AwardsOct 30, 2024
These Designers, Journalists, and Retailers Are Up for a Gem Award

The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.

Peggy Grosz
MajorsOct 30, 2024
Peggy Grosz Leaves Assael After Company Is Sold

Grosz had served as Assael’s senior vice president and creative director since 2017.

CD Peacock Love and Celebration Rings
CollectionsOct 30, 2024
CD Peacock Honors Its Hometown of Chicago in First Bridal Collection

“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.

Hands pushing a shopping cart
SurveysOct 30, 2024
Consumer Confidence Rebounds in October

A more positive view of the labor market contributed to the strongest monthly gain since March 2021.

Mejuri store
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design Students

The funds will be distributed to schools in the U.S., Canada, and the U.K.

Jewelers’ Security Alliance President Jennifer Mulvihill
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security Alliance

Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.

20241030_NYCJW.jpg
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry Week

This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.

Edgar Mitchell’s Rolex GMT-Master Pepsi
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2M

The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.

Pandora ambassadors Chloe Bailey, Halle Bailey, and Pamela Anderson
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and Love

The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.

Stock image of a diamond engagement ring
SourcingOct 29, 2024
De Beers’ Production Drops 25% as Demand Remains Sluggish

The company combined two sights in Q3 due to the slowdown in demand, and said it is moving up the dates for sights 9 and 10 in Q4.

×

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