SourcingNov 25, 2024
William Goldberg Celebrates 2 Major Milestones With New Book“The William Goldberg Way” was released in honor of the company’s 75th anniversary and 25 years of its proprietary Ashoka diamond.
FinancialsJul 29, 2020
Boucheron, Pomellato Struggle in Kering’s H1
The jewelry brands’ limited exposure to the recovering Asia-Pacific market dulled their performance in the first half of the year.
A Mineralismo bracelet featuring rhodonite with black diamond and pink sapphire accents in rose gold from Kering-owned Pomellato’s first high jewelry collection. The division housing Kering’s watch and jewelry brands posted a 26 percent drop year-over-year in first-half revenue.
Paris—Luxury conglomerate Kering said the first half of its fiscal year has been the toughest period it’s faced, with sales sinking double digits across all markets.
The company behind Gucci, Yves Saint Laurent and other high-end brands struggled as the COVID-19 pandemic kept many of its stores shuttered for months on end and halted tourism.
“Our results today underscore the extent of the disruption exacted by the pandemic on our operations,” CEO François-Henri Pinault said in a press release announcing the results, adding he is confident in the company’s ability to weather the crisis.
First-half revenue totaled €5.38 billion ($6.31 billion), a 30 percent decline compared with €7.64 billion ($8.96 billion) a year ago.
RELATED CONTENT: LVMH’s Watch, Jewelry Sales Down 38% So Far This YearIn just the second quarter, revenue fell 44 percent on a comparable basis to €2.18 billion ($2.55 billion).
The company’s watch and jewelry brands, including Pomellato and Boucheron, fall into its “other houses” division, alongside Balenciaga and Alexander McQueen.
First-half revenue in the “others” division totaled €919.1 million ($1.08 billion), a 26 percent drop on a comparable basis.
Revenue in this division sank 44 percent in the second quarter. Retail sales were down 35 percent year-over-year while wholesale, affected in particular by watches, fell 53 percent.
Jewelry brand Qeelin, bolstered by a recovering market in mainland China, saw revenue growth in the first half of the year.
Kering recently invested in the brand, notable for its Chinese symbolism inspiration, to expand its presence in mainland China, leading to strong performances in recent quarters.
Boucheron and Pomellato continued to be hurt by their “limited exposure” to the recovering Asia-Pacific market, noted Chief Financial Officer Jean-Marc Duplaix on an earnings call Tuesday.
The temporary closures across Kering’s retail network had a major impact on the second quarter with 65 percent of its stores closed in April and 45 percent in May. As of June, 15 percent of stores remain closed.
While nearly all stores in Europe and Japan have reopened, 50 percent of its U.S. stores are still closed.
Kering’s luxury houses saw a decline in comparable growth across all regions, including a 34 percent drop in North America, 25 percent in Asia-Pacific, 29 percent in Western Europe and 40 percent in Japan.
Its overall retail sales in the first half were down 31 percent, though Kering noted a higher store conversion rate was easing the sting of softer traffic.
As for wholesale, U.S. department
stores and other wholesale accounts are being cautious about their orders, Kering said.
The loss of travel retail also took its toll as wholesale revenue fell 27 percent year-over-year.
The company said its long-term strategy is to get a tighter grip on its distribution, downsizing the number of wholesalers.
Online sales were a bright spot for the luxury conglomerate, jumping 72 percent in the second quarter and 47 percent in the first six months overall.
E-commerce revenue accounted for 13 percent of all sales, more than double the 6 percent reported last year.
Shoppers in North America warmed up to online shopping, sending e-commerce sales in the region up 46 percent in the first half of the year.
Online sales accounted for 26 percent of retail sales in the U.S., double the 13 percent reported a year ago.
Kering did not provide financial guidance for the year ahead, noting: “The lack of visibility about how the worldwide personal luxury goods market will evolve in the next few months makes it impossible to forecast the group’s second-half sales with any sufficient degree of reliability.”
The loss of travel retail also took its toll as wholesale revenue fell 27 percent year-over-year.
The company said its long-term strategy is to get a tighter grip on its distribution, downsizing the number of wholesalers.
Online sales were a bright spot for the luxury conglomerate, jumping 72 percent in the second quarter and 47 percent in the first six months overall.
E-commerce revenue accounted for 13 percent of all sales, more than double the 6 percent reported last year.
Shoppers in North America warmed up to online shopping, sending e-commerce sales in the region up 46 percent in the first half of the year.
Online sales accounted for 26 percent of retail sales in the U.S., double the 13 percent reported a year ago.
Kering did not provide financial guidance for the year ahead, noting: “The lack of visibility about how the worldwide personal luxury goods market will evolve in the next few months makes it impossible to forecast the group’s second-half sales with any sufficient degree of reliability.”
More on Financials
The Latest
Lab-GrownNov 25, 2024
Lab-Grown Co. Lusix Sold to 2 Companies for $4M Fenix and Dholakia Lab-Grown Diamonds have jointly acquired the Israel-based company, which grows diamonds using solar power.
IndependentsNov 25, 2024
Sophie Bille Brahe Opens First US StoreThe Danish brand has opened an appointment-only location on Madison Avenue in New York City.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
Events & AwardsNov 25, 2024
The Original Miami Beach Antique Show Panel to Feature Fred SavageThe actor and watch enthusiast will be part of the show’s education lineup.
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsNov 22, 2024
Out & About: Inside the CD Peacock MansionStep inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.
CollectionsNov 22, 2024
Piece of the Week: Xander Jane’s ‘Spiked’ Pearl StudsThese punk-inspired earrings from the new Canadian brand’s debut collection reveal the alter ego of the classic pearl.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
SourcingNov 22, 2024
Facets of Fire Expands to Include Pear, Marquise DiamondsThe company brings its nanotechnology to two new fancy cuts for diamonds that feature its signature color and brilliance.
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
