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European Slump Weighs on Kering Jewelry Brands

Covid-19 hits Boucheron and Pomellato badly; Qeelin benefits from Asian recovery.
Jul 29, 2020 8:42 AM   By Rapaport News
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RAPAPORT... Kering reported weak jewelry sales during the first half of 2020 as a slowdown at its Europe-focused brands outweighed stronger figures in Asia.

The group’s Boucheron and Pomellato brands suffered from their exposure to the Western European market during Covid-19, Kering reported Monday. However, sales at Qeelin grew for the six months as demand recovered in mainland China when the coronavirus crisis eased. The company does not disclose precise figures for its jewelry division.

“Performances for the jewelry brands were mixed across the various regions,” the luxury group said. “Good momentum in emerging markets, combined with the development of e-commerce — which is still marginal for these brands — was not sufficient to offset the revenue falls in Boucheron and Pomellato’s historical markets.”

Revenue at watch brands Ulysse Nardin and Girard-Perregaux plunged, Kering added.

Sales for the Kering group, which owns Gucci and Yves Saint Laurent, fell 30% to EUR 5.38 billion ($6.32 billion) as the pandemic forced stores to close and devastated consumer demand and tourist spending. It also warned of an uncertain second half.

“The lack of visibility about how the worldwide personal luxury goods market will evolve in the next few months makes it impossible to forecast the group’s second-half sales with any sufficient degree of reliability,” the company said Tuesday. “However, the loss in revenue experienced in the first six months of the year should not be offset in the second half.”

Image: A Boucheron store on Old Bond Street, London. (Shutterstock)
Tags: asia, boucheron, Europe, Girard-Perregaux, gucci, Jewelry, kering, Pomellato, Qeelin, Rapaport News, Ulysse Nardin, Western Europe, Yves Saint Laurent
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