Kering’s Jewelry Brands Shine Despite Tough Economic Conditions in 2023

Kering’s Jewelry Thrives Despite Challenging Economy

In 2023, Kering’s jewelry and watch divisions experienced robust sales despite facing challenges in other segments. The “other houses” category, which includes jewelry, watches, and other fashion products, saw a decline of 9% to EUR 3.51 billion ($3.79 billion). However, the jewelry segment reported strong sales, particularly in the fourth quarter of the year.

Kering’s jewelry houses Boucheron, Pomellato, and Qeelin maintained excellent momentum with double-digit growth in the fourth quarter. The success of all collections contributed to the strong performance of the jewelry brands. Despite this success, Kering’s overall sales decreased by 4% to EUR 19.57 billion ($21.09 billion) and its profit for the full year dropped by 17% to EUR 2.98 billion ($3.22 billion). CEO François-Henri Pinault acknowledged the uncertain market environment in 2024 and emphasized that continuing investments in the company’s houses will impact its results in the short term.

Kering anticipates a decline in its full-year recurring operating income in 2024 due to ongoing normalization of the sector’s growth and investment strategy. The company intends to prioritize expenses and investments that support long-term development and growth of its houses while maintaining vigilance and discipline with cost structure. A photo of a Pomellato store in Milan was included with this article as a visual representation of Kering’s continued success in this segment of its business.

Leave a Reply