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.
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.
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
Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
The closures are part of the retailer’s plan to close 150 locations over a three-year period.
The online guide is available for free and written with the jewelry industry in mind.
The awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
The grading lab said the search for her successor is underway.
In this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
A pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
Schneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
Gemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.
With versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.
The executive brings more than two decades of industry experience to the role.
The New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.
Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
Adrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.
The pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.