Kering Jewelry Sales Spike Amid US and Asia Demand

Revenue jumped at Kering’s jewelry division in the second quarter amid strong trading in the US and Asia, with its Boucheron and Pomellato brands leading the charge.

Sales for the division grew 15% year on year to EUR 252 million ($287 million) for the three months, the French luxury group reported Tuesday. Sales rose 18% on a comparable basis, which accounts for exchange-rate fluctuation and changes to the company’s structure.

“Kering Jewelry delivered an outstanding performance,” according to the company, which also owns DoDo and Qeelin. “Performance remained broad-based, with continued strong momentum in Japan, Asia Pacific and North America.”

Boucheron reached “record levels,” driven by Japan and Asia Pacific and supported by the launch of the new Quatre XS variation of its Quatre collection, the parent company said. Pomellato “maintained strong momentum,” with continued strength in Japan and North America and the “sustained success of its key collections.”

DoDo had a “more challenging” quarter, impacted by an unfavorable base of comparison. Growth at Qeelin was “strong,” but it saw “softer trends” than in the past, while its performance in the Asia-Pacific region “remained solid.”

First-half jewelry revenue increased 14% year on year to EUR 521 million ($594 million), with comparable sales up 20%. Sales from Kering’s directly operated retail network surged 28% on a comparable basis, while revenues from the wholesale and other segments advanced 4%.

Operating income doubled on a recurring basis to EUR 32 million ($36 million) for the six months from EUR 16 million ($18 million) a year earlier.

The success in jewelry helped compensate for declines at Gucci and its other fashion labels. Group sales crept up 1% to EUR 3.65 billion ($4.16 billion) on a reported basis in the second quarter, but slid 3% to EUR 7.22 billion ($8.23 billion) for the entire first half.

Image: A Boucheron store in London. (Shutterstock)