Owner of high-fashion brands like Gucci and Yves Saint Laurent, Kering has recently reported strong sales numbers coming largely from the Asia-Pacific region. The conglomerate's watch and jewelry division report includes performance stats from 2019.
“Performance was solid double-digit in jewelry [at] Boucheron, Pomellato and Qeelin,” said CEO of Kering François-Henri Pinault. Seeking Alpha transcribed an earnings call with the CEO. “Pomellato benefited from good trends in [Asia Pacific], as well as in its Western European stores with a strong success of the Nudo Pink collection."
In addition, Qeelin's sales have grown into double digits according to Pinault. The sales at the other Kering stores - including both jewelry, watches and fashion accessories - have reportedly risen by 20% to EUR 2.54 billion ($2.76 billion) during 2019. Last year, the revenue had grown by 18%.
Eye jewelry launched in 2019 and Pinault has noted its great success. In addition, fashion jewelry is making its mark equally as well. In order to continue the climb, Kering is working to bolster its jewelry with innovative and intelligent marketing.
“We have significant potential in front of us, including in jewelry,” continued Pinault. “After three years of investment, Boucheron is doing very well. So this is, for me, by far, the most profitable growth in front of us, and this is the priority of the group.”
Group sales have reportedly reached up to 16% (EUR 15.88 billion or $17.28 billion), and 13% comparably. Group sales have performed especially well in the Asia Pacific region as online sales grew to 14% despite a shaky second half of 2019. While these numbers look promising, Kering noted that it is unsure about how the current global politics will affect 2020 sales.
“The group’s operating environment remains unsettled with regard to macroeconomic and geopolitical uncertainties, national trade policies, and fluctuations in exchange rates. These uncertainties may be temporarily heightened during major events or crisis, such as the recent coronavirus epidemic, given the impact on consumption trends and tourism flows, and their ability to affect economic growth,” said Kering in a statement. What's next for Kering? One can only guess.
Information originally sourced from Diamonds.net.