Financials

Kering’s Jewelry Brands See Strong Q3 Growth

FinancialsOct 20, 2021

Kering’s Jewelry Brands See Strong Q3 Growth

Boucheron, Pomellato, and its other jewelry houses posted double-digit growth or stronger in the quarter.

The “Prisme” ring with holographic rock crystal and diamonds in white gold from Kering-owned Boucheron’s new “Holographique” high jewelry collection
Paris—Kering’s sales growth slowed in the third quarter as sales in the Asia Pacific region faltered, but its jewelry houses still put on a strong performance.

The company behind Gucci, Saint Laurent, and other high-end brands posted third-quarter revenue of €4.19 billion ($4.87 billion), a 12 percent increase on a comparable basis and 10 percent higher than the third quarter of 2019.

“On the back of an excellent first half, Kering achieved a very solid third quarter at group level, up double digits over 2019,” said CEO François-Henri Pinault in a press release about the results. 

“Saint Laurent, Bottega Veneta, and our other houses, as well as Kering Eyewear, all posted outstanding performances,” he said.

Revenue from Kering’s directly operated stores, including e-commerce, were up 12 percent year-over-year and up 11 percent compared with 2019.

Online sales continued their growth trajectory, with third quarter revenue up 24 percent year-over-year.

In North America, e-commerce sales accounted for 20 percent of retail sales.

When compared with 2019, overall online sales nearly tripled, up 148 percent.

For the first nine months of the year, overall revenue was up 37 percent year-over-year to €12.24 billion ($14.23 billion).

The company’s watch and jewelry brands, including Pomellato and Boucheron, fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.

Quarterly revenue in the “others” division rebounded, totaling €837.7 million ($981.4 million), a 26 percent increase year-over-year on a comparable basis. 

For the first nine months of the year, revenue in this category was up 48 percent year-over-year to €2.32 billion ($2.7 billion).

Sales in the category were up “very sharply” when compared with the third quarter of 2019, particularly due to the ongoing expansion of Balenciaga and Alexander McQueen.

 Related stories will be right here … 

Nonetheless, it was a strong quarter for its jewelry brands, with all seeing double-digit growth or higher on a one- and two-year basis, said Chief Financial Officer Jean-Marc Duplaix during the company’s earnings call.

“All jewelry houses delivered outstanding performances,” Kering said.

Boucheron’s new collections were met with high praise, especially in China and South Korea.

Pomellato’s classic collections drove its solid growth while its high jewelry offerings heightened its visibility, said Duplaix.
 
Qeelin saw “impressive growth,” with sales doubling compared with the third quarter of 2019.

Kering’s watch brands, including Ulysse Nardin and Girard-Perregaux, returned to growth.

Quarterly retail sales in the “others” division were up 24 percent while wholesale revenue was up 27 percent.

By region, third-quarter sales in North America were up 31 percent year-over-year.

In Asia Pacific, sales were up 1 percent, hampered by a rise in COVID-19 cases over the summer.

Sales in Western Europe were up 15 percent while sales in Japan were up 3 percent.

For the rest of the world, sales were up 24 percent.

The company recently announced it would no longer use fur as of fall 2022.

Kering has been looking to boost its sustainability efforts, joining forces with Richemont-owned Cartier to launch the Watch and Jewelry Initiative 2030 in partnership with the Responsible Jewelry Council, in an effort to set industry-wide sustainability goals.

“Sustainability is central to our strategy, and we achieved major new milestones in recent weeks. More than ever, we are investing to sustain our profitable growth trajectory over the long term and poised to successfully pursue our journey,” said Pinault.
 
Kering did not provide specific guidance for the fiscal year ahead.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

EditorsMay 25, 2022
7 Standout Tiaras in Sotheby’s Platinum Jubilee Exhibition

Senior Editor Brecken Branstrator chooses the pieces she’d most want to see in person.

MajorsMay 25, 2022
Anne Hathaway Is Bulgari’s Newest Ambassador

The actress joins Zendaya and others in a new advertising campaign.

IndependentsMay 25, 2022
The Mexican Shack to Close After 47 Years

Owner Steve Delzio shares his thoughts on retirement after nearly five decades in the jewelry industry.

Brought to you by
Dive into GIA’s Pearl Expertise

When it comes to knowing the identity and quality of your pearls, count on GIA as your independent pearl experts.

IndependentsMay 25, 2022
Designer Theo Fennell Has Written a Memoir

“I Fear for This Boy” takes readers through the ups and downs of his business and is available for pre-order now.

Weekly QuizMay 19, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
IndependentsMay 25, 2022
MVEye, Wedding Report Partner on New Jewelry Research Platform

“Today’s Wedding Jewelry Consumer” shares data about engagement ring market size, lab-grown and natural diamonds, and more.

ColumnistsMay 24, 2022
The PR Adviser: 10 Questions to Contemplate

Columnist Lilian Raji wants to walk you through the customer journey. But first, she’d like you to answer a few questions.

Brought to you by
A.I. Grading is Changing Conversations at the Retail Counter

Advanced technology levels the playing field, helping jewelers give customers what they want.

Events & AwardsMay 24, 2022
8 Gold Jewelry Designers Unveil New Platinum Designs

Several Couture brands have partnered with Platinum Guild International ahead of the jewelry trade show.

Lab-GrownMay 24, 2022
Kendra Scott Unveils Lab-Grown Engagement Ring Collection

The jewelry company is moving into bridal just a month after branching out into the watch world.

SourcingMay 24, 2022
State of the Diamond Industry: Where Does Supply Go From Here?

The 2008 economic crisis, COVID-19, and sanctions on Russian goods have set the stage for an interesting decade for natural diamond supply.

Events & AwardsMay 24, 2022
WJA to Host Diversity Keynote at New Las Vegas Breakfast Event

The Generating Community Impact fundraiser on June 11 will feature Karine Bah Tahé of Blue Level Training.

WatchesMay 23, 2022
Steven Kaiser, Watch Industry Veteran and Beloved Mentor, Dies at 68

Kaiser, whose illustrious career spanned decades, died suddenly on Friday.

IndependentsMay 23, 2022
Long’s Jewelers to Open New Location

The family-owned jeweler is relocating its Braintree, Massachusetts, store to a new space.

IndependentsMay 23, 2022
Luxury Goods Veteran Olivier Stip Joins Chicago Jeweler CD Peacock

He will step into the retailer’s newly created role of chief development officer.

GradingMay 23, 2022
Gem-A Launches Digital Entry-Level Gemology Course

GemIntro is meant to give a broad introduction to gems and gemology.

Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain

Three industry experts discuss “recycled” gold vs. mined, their challenges and benefits, and how jewelers can navigate the area.

AuctionsMay 20, 2022
Piece of the Week: ‘Birds in Flight’ by Oscar Heyman

The New York jeweler made this incredible, colorful Art Deco bracelet featuring tropical birds in 1927.

SurveysMay 19, 2022
5 Predictions for Jewelry Retail in the Second Half of 2022

From a slowdown in sales growth to rising costs, Fruchtman Marketing outlines its expectations for the second half of the year.

MajorsMay 19, 2022
As It Nears 75, Here’s How Grandview Klein Stays Competitive

Once a part of Julius Klein Group, the diamond company combines its direct supply and cutting expertise with a keen eye to the future.

SourcingMay 19, 2022
De Beers’ Rough Sales Up 21% So Far This Year

One analyst cited rising diamond prices and the sanctions on Alrosa as contributing factors.

CollectionsMay 19, 2022
Brilliant Earth Collaborates with Jade Trau

The two have partnered on a capsule collection.

MajorsMay 19, 2022
Jewelers Mutual Adds 2 Industry Veterans to Its Board

John A. Green of retailer Lux Bond & Green and Niveet Nagpal of Omi Privé have joined the board of directors as of May 18.

AuctionsMay 18, 2022
Jewels from Bette Midler Are Headed to Bonhams

The auction house’s upcoming sale also includes collections from American heiresses.

IndependentsMay 18, 2022
Jeweler Lewis Baribault Celebrates 50th Work Anniversary

The Connecticut jeweler reflected on five decades in the industry and what the future holds for the family business.

Events & AwardsMay 18, 2022
Visit A Mine in New Jersey With WJA New York Metro

The chapter has organized a day trip to the Sterling Hill Mine and Museum in Ogdensburg on Saturday, May 21.

SourcingMay 17, 2022
A New Source in Tanzania Is Producing Cobalt-Blue Spinel

The stones come from a deposit close to Mahenge and have been on the market for several months.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy