Kering’s jewellery division revenues surge to €521m

Kering’s jewellery division has reported first-half revenue of €521m (£451m), up 14% on a reported basis and 20% on a comparable basis, outperforming the wider luxury group’s fashion and leather goods business.

The group’s recurring operating income more than doubled to €32m (£28m), up from €16m (£14m) a year earlier. The division’s recurring operating margin also improved by 2.7 percentage points to 6.2%. In the second quarter alone, jewellery revenue reached €252m (£218m), up 15% on a reported basis and 18% on a comparable basis.

Sales through Kering’s directly operated retail network increased 28% on a comparable basis, while wholesale and other revenue declined 2%.

Kering said momentum in its jewellery division remained strong in Japan, Asia Pacific and North America. It added that, among its jewellery brands, Boucheron achieved record sales during the quarter, supported by the launch of a new Quatre XS variation of its Quatre collection, while Pomellato maintained strong momentum, driven by demand in Japan and North America and the continued success of its core collections.

Additionally, it reported that DoDo experienced a more challenging quarter against a strong comparative period, while Qeelin continued to grow despite softer trading during the quarter, with performance in Asia Pacific remaining solid.

The jewellery division’s performance contrasted with Kering’s fashion and leather goods division, where first-half revenue declined 5% on a reported basis and 1% on a comparable basis to €5.8bn (£5.0bn). Gucci, the group’s largest brand, reported first-half revenue of €2.76bn (£2.39bn), down 9% on a reported basis and 5% on a comparable basis, although the company said trading improved sequentially during the second quarter.

Across the wider group, first-half revenue totalled €7.22bn (£6.25bn), up 1% on a comparable basis, while recurring operating income remained broadly flat at €921m (£797m).

Luca de Meo, CEO of Kering, said: “Kering delivered improved performance in the second quarter, with revenue returning to growth. Across the group, we are seeing early signs of progress in brand desirability, commercial momentum and operating performance. The quarter also showed sequential acceleration, including at Gucci, driven by the actions taken over recent months.

“These first-half results demonstrate the positive impact of the decisive measures we have taken to reinforce the distinctiveness of our brands, simplify our organisation and increase effectiveness across the group. We are also advancing the rollout of our group platforms, leveraging technology to enhance efficiency, strengthen client engagement and support stronger execution across our houses.

“While the market environment remains demanding, we are focused on delivering our roadmap with discipline and consistency, creating the foundations for sustainable growth and long-term value creation.”