Kering's jewellery brands delivered impressive results in the third quarter, even amidst a backdrop of weakening luxury demand in challenging macroeconomic conditions.
Within Kering's 'other houses' segment, encompassing jewellery, watches, and additional fashion items, reported sales saw a 19% year-on-year decline, amounting to EUR 805 million ($852.2 million), as confirmed by the French luxury conglomerate on Tuesday. However, Kering attributed this decline primarily to specific fashion brands under the same segment.
The company noted that Balenciaga experienced mixed growth across different regions, influenced by a high baseline for comparison, while Alexander McQueen encountered a slowdown during the quarter. On a positive note, Boucheron's performance reflected the success of its high-jewellery and jewellery collections, Pomellato achieved substantial growth in its retail outlets, and Qeelin displayed remarkable momentum.
For the three months ending September 30, Kering's group revenue declined by 13% to EUR 4.46 billion ($4.73 billion).
In the first nine months of the year, revenue from the 'other houses' division dipped by 10% to EUR 2.66 billion ($2.82 billion), contributing to a 3% decrease in group revenue, which amounted to EUR 14.6 billion ($15.46 billion).