CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
FinancialsFeb 12, 2020
Kering’s Jewelry Houses See Double-Digit Growth in 2019
CEO François-Henri Pinault said the company “remains confident” despite the coronavirus’ effect on the key Chinese market.
A pair of arrow motif earrings from Kering-owned brand Gucci. The luxury conglomerate reported double-digit revenue growth in its fourth-quarter and full-year results.
Paris—Luxury conglomerate Kering reported double-digit revenue growth in its fourth-quarter and full-year results, including in its watches and jewelry division.
Fourth quarter overall revenue totaled €4.36 billion ($4 billion), an 11 percent increase on a comparable basis, while revenue for the full year rose 13 percent year-over-year to €15.38 billion ($14.1 billion).
Fourth quarter revenue in the watches and jewelry division totaled €699.9 million ($641.59 million), a 15 percent increase on a comparable basis.
For the full year, revenue in the category clocked in at €2.54 billion ($2.33 billion), an 18 percent jump year-over-year.
Net income for the full year fell 37 percent following a €1.25 billion ($1.36 billion) tax penalty paid to Italian authorities.
Online sales climbed 23 percent on an annual basis, while wholesale sales rose 10 percent.
Overall, Kering saw growth across all regions, including a 7 percent increase in North America, 20 percent in Asia-Pacific, 14 percent in Western Europe and a 6 percent increase in Japan.
Kering’s brand portfolio spans fashion, leather goods, watches and jewelry.
The company refers to its 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.
“Performance was solid double-digit in jewelry with Boucheron, Pomellato and Qeelin taking advantage of the success of their collections and improved market coverage,” Chief Financial Officer Jean-Marc Duplaix said on the earnings call Wednesday morning.
Kering highlighted its “successful investment” in Boucheron and Qeelin, which recently expanded its presence in mainland China.
Looking at its performance in China, Kering CEO François-Henri Pinault said on the call the environment had “changed significantly” in the wake of the coronavirus outbreak, which was responsible for 1,100 deaths worldwide as of Wednesday morning.
Pinault said that about half of its stores in China are closed and those remaining open have seen a drop in traffic and shortened operating hours, leading to a “strong drop” in sales.
The company has postponed events, product launches, and store openings in the area and has begun moving inventory from China to other regions.
“Due to the evolving nature of the situation, it is impossible at this time to fully evaluate the impact on our businesses and how fast they will recover,” he said.
Investment group Jefferies estimated Chinese buyers made up about 40 percent of the €281 billion ($306 billion) spent on luxury goods worldwide in 2019
and drove 80 percent of the growth, as per a report from the Financial Times.
“The fourth quarter was great, but we need more information on current issues in China,” Jefferies analyst Flavio Cereda said to the FT. “The underlying strength of the business bodes well for the second half.”
Kering did not provide guidance for the year ahead but noted it “remains confident” in its growth potential.
“The fourth quarter was great, but we need more information on current issues in China,” Jefferies analyst Flavio Cereda said to the FT. “The underlying strength of the business bodes well for the second half.”
Kering did not provide guidance for the year ahead but noted it “remains confident” in its growth potential.
More on Financials
The Latest
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
Weekly QuizApr 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
WatchesApr 18, 2024
TAG Heuer Opens Its Largest Standalone Boutique at SeaThe 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
Policies & IssuesApr 17, 2024
NDC Prevails in U.K. Case Over Lab-Grown Diamond AdvertisingNDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
Events & AwardsApr 17, 2024
And the 2024 Winner of the Shipley Award Is … John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
MajorsApr 17, 2024
Stuller’s B&D Opens New HeadquartersB&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
CollectionsApr 16, 2024
Akaila Reid Launches ‘Eat Cake’ CollectionIt’s ultra-feminine and filled with gold, pearls, and soft pastels.
MajorsApr 16, 2024
Loudr Adds 2 DirectorsEmily Highet Morgan and Emily Bennett have joined the agency’s team.
MajorsApr 16, 2024
Stuller Releases First Lab-Grown Diamond Jewelry CatalogIts updated book for mountings is also now available.
SourcingApr 16, 2024
Karen Rentmeesters Takes Over as Interim CEO of AWDCShe has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
TechnologyApr 15, 2024
Judge Rules Jeweler’s Lawsuit Against PNC Bank Can Move ForwardJoyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
IndependentsApr 15, 2024
Alfred W. DeScenza of DeScenza Diamonds Dies at 95He is remembered by loved ones for his loyalty, integrity, and kindness.
AuctionsApr 15, 2024
Madeleine K. Albright Jewelry, Pins Coming to AuctionHosted by Freeman’s | Hindman, the sale will take place May 7-8.
AuctionsApr 15, 2024
All of Sotheby’s ‘Rough Diamonds’ Sold in Less Than an HourThe auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
Events & AwardsApr 15, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About InsuranceFrom cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone CharmThe charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship WinnersAhead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFairMembers can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
