Luxury group Kering reported a record performance for the first quarter of 2017, reporting revenue of €3.6 billion ($3.93 billion) for the period. While its solid performance was spearheaded by its overall luxury activities, the group’s watches and jewellery brands recorded 13.1 percent growth during the quarter.

The group said its Boucheron and Pomellato jewellery brands reported good performances, innovating and developing new collections fronted by what it called “360-degree marketing campaigns”.

Kering said its watch manufacturers also fared well in the first quarter, with Girard-Perregaux and Ulysse Nardin joining exhibitors at the Salon International de la Haute Horlogerie (SIHH) in January, where they “successfully unveiled several new models”.

Revenue generated by luxury activities totalled €2.42 billion ($2.64 billion) during the period, up by 31.6 percent on a comparable basis, against a favourable base of comparison.

Sales growth in the Group’s directly operated store network was particularly high, at 36.6 percent on a comparable basis, with Western Europe and the Asia Pacific region reporting retail sales increases on a comparable basis of 49.9 percent and 46.7 percent, respectively.

Growth in retail sales was also significant in North America and the rest of the world, up 29.7 percent and 28.1 percent respectively, on a comparable basis. Online sales leapt 60.1 percent on a comparable basis, underscoring the success of its digital strategies, the group said.

“Kering achieved a record performance in the first three months of the year, posting a sharp acceleration in sales growth. Benefitting from somewhat more favourable market conditions, our strong delivery primarily stems from meticulous execution of our strategy and the creative audacity of our houses,” said group Chairman François-Henri Pinault.

He added, “In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year. The group will continue to focus on organic growth and market share gains, on value creation and ongoing operational and financial discipline,” he concluded.

Kering’s global brands include Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin. It is also developing the sport & lifestyle brands Puma, Volcom and Cobra.

https://www.gemkonnect.com/news/watches-jewellery-double-digit-growth-kering-reports-record-q1