Luxury group Kering reported a 2-percent rise in jewelry sales for 2016, attributing growth in its mid- and lower-range products.
Revenue from Kering’s jewelry brands, which include Boucheron, Pomellato, Dodo and Qeelin, reached approximately $450.9 million (EUR 423.5 million) during the year, accounting for 5 percent of the group’s luxury sales. Watch sales fell 8 percent to around $360.7 million (EUR 338.76 million).
“High-end watches were hit by a negative Asian performance, especially in Hong Kong, while [increased jewelry sales were] driven by mid-prices and the entry offer, with high jewelry slowing down,” the company explained last week.
Overall luxury sales grew 8 percent to $8.99 billion (EUR 8.45 billion), while group revenue, including sportswear, rose 7 percent to $13.19 billion (EUR 12.39 billion). Group net income went up 20 percent to $924.8 million (EUR 868.5 million).
The company, whose flagship brands are Gucci and Puma, noted lackluster market conditions in North America and signs of recovery in China; however, European sales grew thanks to higher tourist spending in the fourth quarter.