Kering’s jewelry houses see double-digit growth in 2019

Lenore Fedow

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 12 morning.

Kering highlighted its “successful investment” in Boucheron and Qeelin, which recently expanded its presence in mainland China.

Read full article 

Source National Jeweler