Pandemic Drags Down Kering Jewelry Revenue

RAPAPORT… Kering’s jewelry and watch divisions have been “hard hit” by COVID-19, dragging revenues down for the first quarter, the French luxury group reported Monday.

The company, which owns Boucheron, Pomellato and Qeelin, said income for its “other houses” segment — including jewelry and watches — fell 4.1% to EUR 553.3 million ($597.1 million) in the three months ending March 31.

It noted “resilient performance” for the couture and leather goods that sit within the division, but acknowledged that the pandemic has had a “significant impact” on jewelry and watches.

Total revenue for the group, the parent company of high-end brands Gucci and Yves Saint Laurent, sank 15% to EUR 3.2 billion ($3.46 billion) in the first quarter.

“After a very promising start to the year for all our houses, the rapid spread of COVID-19 affected our performance in our main markets,” said Kering CEO François-Henri Pinault. “We are working hard on ensuring the continuity and readiness of all our businesses. Adapting our cost base and preserving our cash position are top priorities, implemented at all levels of the group.”


Image: A Gucci store in Hong Kong. (Shutterstock)