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Kering Reports Sharp Rise in Jewelry Sales
The French company, which owns Boucheron and Ulysse Nardin, said jewelry did well while its watch brands struggled in 2015.
Paris--Sales for the jewelry brands owned by Kering rose sharply in 2015 while sales for its watch brands lagged, the Paris-based luxury good holding company reported.
Kering (formerly PPR) said jewelry sales were fueled by “very high business volumes” in the fourth quarter while its sales for its watch brands picked up quarter-to-quarter but, ultimately, were “held back by an unfavorable market environment” in 2015.
Kering owns Boucheron, Pomellato, Dodo and Qeelin, which is just moving into the U.S. market, along with the Ulysse Nardin, Girard-Perregaux and JeanRichard watch brands.
In 2015, the company hired two new CEOs for its watch and jewelry brands, tapping Hélène Poulit-Duquesne to head Boucheron and Sabina Belli for the Pomellato group, which includes both Pomellato and Dodo.
Watches and jewelry account for 10 percent of the group’s overall sales and are part of the segment of the business classified as “Luxury activities,” which also includes Gucci, Bottega Veneta and Yves Saint Laurent.
Revenues for this segment of Kering’s business increased 4 percent year-over-year (on a comparable basis) and helped to fuel a 5 percent (on a comparable basis) year-over-year increase in revenue and a 32 percent rise in net income for the group as a whole.
Commenting on the results, Kering Chairman and CEO François-Henri Pinault said, “Kering’s solid 2015 results reflect brisk sales and improve operating performances in the second half of the year. These results come amid a more complex economic and geopolitical environment, accentuating the shifts taking place in our sector.”
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