• Mon. Mar 4th, 2024

Jewelry and Watch Sales Bright Spot for Kering Amidst Challenging Year

ByEditor

Feb 11, 2024
Kering’s Jewelry Thrives in Tough Economy

Despite facing a challenging year overall, Kering’s jewelry and watch categories saw strong sales in 2023. The company’s “other houses” category, which includes jewelry, watches, and other fashion items, experienced a 9% decrease in sales, totaling EUR 3.51 billion. However, Kering observed strong sales in its jewelry division during the fourth quarter of the year.

Kering’s jewelry houses, including Boucheron, Pomellato, and Qeelin, experienced double-digit growth in the fourth quarter due to the success of all collections. Despite this growth, the company’s overall sales decreased by 4% to EUR 19.57 billion and profits also decreased by 17%. CEO François-Henri Pinault attributed this decline to continued pressure on the company’s results due to investments in its houses.

Pinault emphasized that the impact of Kering’s investment strategy will have an effect on the group’s full-year recurring operating income, particularly in the first half of 2024. He also expressed a focus on remaining vigilant and disciplined regarding its cost structure while prioritizing expenses and investments that support the long-term development and growth of its houses.

In summary, while Kering faced challenges in various segments of its business in 2023, its jewelry and watch divisions maintained strong sales performance despite near-term financial impacts from continued investment in their houses.

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