CollectionsJul 08, 2025
Mikimoto’s High Jewelry Collection Turns Pearls into PetalsThe “Les Pétales” collection imagines roses caught mid-bloom as a tribute to nature’s beauty.
FinancialsApr 22, 2020
Kering’s Watch, Jewelry Segment Takes A Hit in Q1
Jewelry brand Qeelin was the only bright spot due in part to a rebound in mainland China.
A “Rhapsody in Green” 18-karat gold ring, featuring malachite and emeralds, by Pomellato. The Kering-owned brand was hit particularly hard in the first quarter as the coronavirus took a toll on watch and jewelry sales.
Paris—Luxury conglomerate Kering was set to have a strong start to the year, but the coronavirus has weighed heavily on its business, sending first-quarter revenue falling double digits.
“The COVID-19 pandemic took a heavy toll on our operations in the first quarter,” said CEO François-Henri Pinault in a press release announcing the quarterly results.
The quarter was off to “an exceptionally good start” in January, said Kering, but things turned sour in February as a result of store closures in the Asia-Pacific region.
In March, the situation deteriorated even further as stores closed across Europe and the U.S., followed by a halt in tourism and the partial closure of the company’s production and logistics facilities near the end of the quarter.
Overall revenue totaled €3.20 billion ($3.47 billion), a 16 percent decline on a comparable basis.
The company refers to its top-performing brands Gucci, Yves Saint Laurent and Bottega Veneta as its “main” houses while its watch and jewelry offerings, as well as Balenciaga and Alexander McQueen, fall into the “other houses” division.
First-quarter revenue in the “others” division totaled €553.3 million ($600.3 million), a 5 percent dip on a comparable basis.
The category’s soft luxury goods, including couture and leather goods, put on “a resilient retail performance” with strong sales in Western Europe and the U.S. offsetting declines in Asia-Pacific and Japan. Wholesale in soft luxury goods stayed strong.
That was not the case for hard luxury, including the watches and jewelry segment, which was “hit hard by the crisis,” said Kering.
“Conditions were tougher in hard luxury, which faced significant disruption in wholesale, a major channel for this division,” said Chief Financial Officer Jean-Marc Duplaix on the earnings call Tuesday morning.
RELATED CONTENT: LVMH’s First-Quarter Sales Fall 17%Boucheron and Pomellato in particular suffered as both brands are “heavily dependent” on Western Europe, said Duplaix, and felt the “severe impact” of the closing of their networks.
In contrast, Qeelin, a jewelry brand inspired by Chinese symbolism, performed well, benefitting from collaboration with distribution partners and a rebound in mainland China, said Duplaix.
In its fourth-quarter results, the company highlighted its “successful investment” in Qeelin, which recently expanded its presence in mainland China.
Overall, Kering’s retail comps fell 19 percent in the first quarter, though online sales rose 21 percent, increasing triple digits in mainland China.
Two-thirds of the decrease in retail comps was attributed to the Asia-Pacific region, led by Hong Kong.
Wholesale dipped 7 percent
on a comparable basis, which Kering attributed to selective distribution, order adjustments, and the closure of its central logistics hub late in the quarter.
Kering’s luxury houses saw a decline in revenue across all regions on a comparable basis, including a 7 percent dip in North America, 30 percent in Asia-Pacific, 14 percent in Western Europe and 17 percent in Japan.
The company highlighted its role in aiding the fight against coronavirus, providing masks as well as monetary donations to the U.S., U.K., Italy, France, and China.
In light of the pandemic, Pinault, Group Managing Director Jean-François-Palus, and Kering’s board of directors will be reducing a portion of their compensation.
Kering did not provide guidance for the year ahead but Pinault stated: “My confidence in Kering’s future lies in the strength and values of our houses, which will all emerge from this period of uncertainty at the top of their game, as well as in our ability to blend long-term vision with near-term imperatives.
Kering’s luxury houses saw a decline in revenue across all regions on a comparable basis, including a 7 percent dip in North America, 30 percent in Asia-Pacific, 14 percent in Western Europe and 17 percent in Japan.
The company highlighted its role in aiding the fight against coronavirus, providing masks as well as monetary donations to the U.S., U.K., Italy, France, and China.
In light of the pandemic, Pinault, Group Managing Director Jean-François-Palus, and Kering’s board of directors will be reducing a portion of their compensation.
Kering did not provide guidance for the year ahead but Pinault stated: “My confidence in Kering’s future lies in the strength and values of our houses, which will all emerge from this period of uncertainty at the top of their game, as well as in our ability to blend long-term vision with near-term imperatives.
More on Financials
The Latest
ColumnistsJul 08, 2025
Peter Smith: Why Jewelers Struggle With Premium PricingLuxury brands charge thousands for their shoes and handbags. Jewelers pricing diamond products should take note, Peter Smith writes.
IndependentsJul 08, 2025
David Rotenberg of David Craig Jewelers Dies at 79Rotenberg was an active member of the American Gem Society and an accomplished appraiser who also worked with therapy dogs at a hospital.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
TechnologyJul 08, 2025
‘Diamond Divas’ Brings the Showroom to Social Media Reality SeriesIt follows New York-based brand Shahla Karimi Jewelry’s all-women team in “Say Yes to the Dress” meets “The Office”-style episodes.
Weekly QuizJul 02, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Policies & IssuesJul 08, 2025
SMO Gold Launches New FoundationIn its inaugural year, the SMO Foundation will focus on supporting two organizations in West Africa and one in South America.
Policies & IssuesJul 07, 2025
Higher Tariffs Set to Take Effect Aug. 1, Officials SayThe announcement comes just as the 90-day freeze on the “reciprocal” tariffs nears its end, giving countries more time to negotiate.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
MajorsJul 07, 2025
Natural Diamond Council CEO David Kellie To Step DownKellie, who joined the organization in 2019, will remain in his role through the end of 2025.
CrimeJul 07, 2025
7 Suspects Charged in California Jewelry Store BurglaryPolice officers apprehended the suspects as they were allegedly attempting to gain entry into another jewelry store.
Events & AwardsJul 07, 2025
Applications Open for Ella Klein Internship The program, a collaboration between Julius Klein Diamonds and the Women’s Jewelry Association, is in its second year.
Supplier BulletinJul 03, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New AmbassadorThe 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry HallThe West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-NegativeThis past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From YepremThe brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in BurglariesJSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast FlagshipLocated on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.
MajorsJul 02, 2025
Marco Bicego Opens Milan FlagshipThe new location continues the brand’s celebration of its 25th anniversary.
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New CampaignThe online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive DirectorShe will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry NetworkWorking with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.
MajorsJul 01, 2025
Cast Closes Business, Plans for RelaunchThe jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship ProgramThe company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73He is remembered for his successful entrepreneurship, generosity, and dedication to his family.
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report SaysThe jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.
TrendsJul 01, 2025
Amanda’s Style File: Red Hot RubiesWelcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.
