Sat. Feb 24th, 2024
Kering’s Jewelry Thrives in Tough Economy

Despite the challenges faced by Kering as a whole in 2023, its jewelry and watch categories performed exceptionally well. The company’s “other houses” category, which encompasses jewelry, watches, and other fashion items, experienced a 9% decrease in sales that totaled EUR 3.51 billion. However, Kering observed strong sales in its jewelry division during the fourth quarter of the year.

Kering’s jewelry houses saw double-digit growth in the final quarter of the year, thanks to the success of all collections. This momentum helped offset some of the pressure on the company’s results due to investments in its houses. Overall, despite a 4% decrease in sales to EUR 19.57 billion and a 17% drop in profits for the full year, Kering remained committed to prioritizing expenses and investments that support long-term development and growth of its houses.

CEO François-Henri Pinault addressed these challenges head-on, acknowledging that continued investment in Kering’s houses would have an impact on full-year recurring operating income, particularly during the first half of 2024. However, he emphasized that cost structure must remain vigilant and disciplined to maintain profitability.

In summary, while various segments of Kering’s business faced challenges in 2023, its jewelry and watch divisions maintained strong sales performance. The company remains focused on long-term growth while continuing to invest in its houses despite potential near-term financial impacts.

By Editor

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