Kering, the French luxury group, reported an 11 per cent drop in revenue to $4.8bn during Q1, but reported double-digit growth at Boucheron and “outstanding performances” at its other high jewelry maisons.
It said market conditions generally had been tough, with an adverse macro-economic backdrop, and in Asia-Pacific in particular they were “volatile and challenging”.
Its First Quarter 2024 Revenue report noted that “Kering’s jewelry houses (which include Pomellato, DoDo, and Qeelin) continued to deliver outstanding performances, driven by sharp double-digit growth at Boucheron, although it did not provide figures.
Its fashion brands – Gucci, Yves Saint Laurent and Bottega Veneta – and eyewear brands account for around three quarters of its revenues.
Watches and jewelry fall under “other houses”, which saw a 7 per cent drop, overall, in revenue for Q1 2024.
“Kering’s performance worsened considerably in the first quarter,” said François-Henri Pinault, Kering’s chairman and CEO.
“While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline.
“We now expect to deliver sharply lower operating profit in the first half of this year.”
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