Kering Jewelry Sales Fall Amid Challenging Luxury Market

Kering’s jewelry brands saw a significant drop in revenue in the third quarter as demand for luxury goods softened, primarily in Asia.

Sales at Kering’s “other houses” segment — which includes jewelry, watches and additional fashion products — fell 15% year on year to EUR 686 million ($740.6 million), the French luxury conglomerate said last week.

“Our jewelry houses were more resilient, but not fully immune to the overall regional trend,” Kering chief financial officer Armelle Poulou said on an earnings call transcribed by Seeking Alpha. “Kering remains impacted by its exposure to China.”

Group sales for the three months that ended September 30 slid 15% to EUR 3.79 billion ($4.09 billion).

In the first nine months of the year, the group generated revenue of EUR 12.8 billion ($13.82 billion), down 12%, while sales for other houses dropped 10% to EUR 2.4 billion ($2.56 billion).

Image: A Boucheron store in Shanghai, China. (Shutterstock)