Kering’s jewelry and watch divisions saw solid sales in the first quarter amid challenging conditions in the Asia-Pacific market and its wholesale business that affected the company’s overall performance.
Revenue from the group’s “other houses” segment, which includes jewelry and watches, fell 7% year on year to EUR 824 million ($884 million) for the three months ending March 31, the company said last week.
“Kering’s jewelry houses continued to deliver outstanding performances, driven by sharp double-digit growth at Boucheron,” the luxury conglomerate noted.
However, wholesale revenue for the segment slid 25% on a comparable basis, impacted by the company’s streamlining strategy and a difficult situation in the Chinese market.
Total revenue for the group, which also owns jewelry brands Pomellato, Qeelin and DoDo, as well as fashion lines Gucci and Yves Saint Laurent, fell 11% to EUR 4.5 billion ($4.83 billion) for the period. The decline was the result of a significant drop at Gucci following the company’s strategic repositioning of the brand and sluggish market conditions in China, which outweighed stronger sales in western Europe, North America and Japan, the company explained.
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Main image: A Qeelin store in Hong Kong. (Shutterstock)
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