Jewelry Strong for Kering in Challenging Economy

Kering saw robust sales in its jewelry and watch divisions in 2023, even as a “trying year for the group” led to a downturn in other segments, it said.

Sales at Kering’s “other houses” category — which includes jewelry and watches as well as other fashion products — slipped 9% on a reported basis to EUR 3.51 billion ($3.79 billion), the French luxury conglomerate said last week. Revenue at stores that were open a year earlier fell 8%. However, sales of jewelry were strong, primarily in the fourth quarter, Kering noted.

“Kering’s jewelry houses maintained their excellent momentum, with double-digit growth in the fourth quarter, driven by the success of all collections,” the owner of high-fashion houses Gucci and Yves Saint Laurent noted. Kering’s jewelry brands include Boucheron, Pomellato and Qeelin.

Group sales slid 4% on a reported basis and 2% at stores open a year earlier to EUR 19.57 billion ($21.09 billion). Profit for the full year dropped 17% to EUR 2.98 billion ($3.22 billion).

“In a market environment that remains uncertain in early 2024, our continuing investments in our houses will put pressure on our results in the short term,” said Kering CEO François-Henri Pinault.

“In 2024, in a context of ongoing normalization of the sector’s growth, the impact of Kering’s investment strategy will weigh on the group’s full-year recurring operating income, which should post a decline compared to the level reported in 2023, particularly the first half of the year. The group will prioritize expenses and investments supporting the long-term development and growth of its houses, while remaining vigilant and disciplined with regards to its cost structure,” the company added.