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Kering’s Jewelry Brands See Double-Digit Growth in H1
Jewelry brands Pomellato, Boucheron and Qeelin delivered a strong performance in the first half of Kering’s fiscal year.
The “Japanese Sunset” ring from Pomellato’s Ritratto collection, featuring rhodonite and pink sapphire accents set in 18-karat rose gold ($11,500). The Milan-based, Kering-owned brand reported double-digit growth in the first half of the year.
Paris—Luxury conglomerate Kering posted strong results for the first half of its fiscal year, seeing double-digit growth in overall revenue and from its jewelry brands.
Revenue for the first half of the year totaled €7.64 billion ($8.51 billion), an 18 percent increase year-over-year.
Second-quarter revenue increased by 13 percent on a comparable basis to €3.85 billion ($4.29 billion).
Kering’s portfolio spans fashion, leather goods, watches and jewelry.
The company refers to top-performing brands Gucci, Yves Saint Laurent and Bottega Veneta as its main “houses,” while brands including Balenciaga and Alexander McQueen, as well as watch and jewelry offerings, are referred to as the “other houses” division.
First-half revenue in the division that includes watches and jewelry totaled €1.23 billion ($1.37 billion), a 20 percent increase on a comparable basis.
Jewelry brands Pomellato, Boucheron and Qeelin saw “strong double-digit growth” with the whole division delivering a strong performance driven by retail, said Kering, and the company reported “encouraging progress” for its watch brand Ulysse Nardin.
Overall, direct sales for the category that includes watches and jewelry increased 32 percent on a comparable basis in the first half while wholesale was up 10 percent.
Online sales rose by 20 percent.
On the news front for Kering’s jewelry portfolio, Gucci introduced “Hortus Deliciarum” earlier this month, its first high jewelry collection featuring more than 200 pieces.
Overall, Kering saw growth across all regions, including a 7 percent increase in North America, 24 percent in Asia-Pacific, 15 percent in Western Europe and a 10 percent increase in Japan.
The company touted its strong performance in Asia-Pacific, specifically in mainland China, at a time when other luxury retailers have struggled in the fight for Chinese tourist dollars.
Looking ahead, the company said it plans to continue the “selective expansion” of its store network and invest in its e-commerce, omni-channel distribution, logistics and IT infrastructure.
In the face of an “unsettled” operating environment, Kering said, referring to macroeconomic and geopolitical strife, it plans to stay the course and keep a close eye on its management and allocation of resources.
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