FinancialsOct 16, 2024
LVMH Jewelry, Watch Sales Down 5 Percent So Far This Year 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.
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 …
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.”
Editors' Picks
Sponsored by
More on Financials
The Latest
MajorsJan 27, 2025
Le Vian Corp. Chairman Larry LeVian, a Man of Faith and Family, Dies at 73 LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
CrimeJan 27, 2025
New Jersey Jeweler Sentenced to 2 1/2 Years for Evading CustomsMonishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
SourcingJan 27, 2025
Dev Shetty To Head New Auction House for Rare Colored GemsJemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
CollectionsJan 27, 2025
Rachel Quinn Embodies Feelings of Falling in Love in New CollectionQuinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
Weekly QuizJan 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJan 27, 2025
Arch Crown’s 2025 ‘Tag & Label’ Catalog Is Out Now The catalog is 48 pages and features more than 100 styles.
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year NecklaceThe one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Recorded WebinarsJan 24, 2025
Watch: Fine Jewelry Market Predictions for 2025 “My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson The gemstone show is slated to take place at the Scottish Rite Cathedral.
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap JewelerThe suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
CrimeJan 23, 2025
Security Guard Killed in Armed Robbery at Namibian Diamond Co. Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
SourcingJan 23, 2025
RapNet, AGTA Partner to Launch Gemstone Trading NetworkThe online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
Events & AwardsJan 23, 2025
Plumb Club Announces Speaker Lineup for Symposium ‘25The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
SourcingJan 23, 2025
Fancy Color Research Foundation Names New CEORoy Safit took over the role on Jan. 1.
ColumnistsJan 22, 2025
On Data: How Did Independent Jewelers Fare in 2024? Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
Policies & IssuesJan 22, 2025
Jewelers Mutual Steps Up Aid for LA Jewelry BusinessesThe company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
Events & AwardsJan 22, 2025
JA Seeking Nominations for Its Next ‘20 Under 40’ ClassNow in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.
SurveysJan 22, 2025
Holiday Sales Hit Record High, Says NRFCore retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.
CollectionsJan 22, 2025
Foundrae’s New Collection Channels the Power of NowThe “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little SecretPeter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha MoussePantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board MembersJulia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ NecklaceThe necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer AwardJameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth LocationThe 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
