March 16 (Reuters) - Kering on Monday said it had created a new division, Kering Jewelry, to bring together its jewelry houses, including Boucheron and Pomellato. Jean-Marc Duplaix has been appointed
Kering forms new jewelry division
Kering's Strategic Move in the Jewelry Sector
PARIS, March 16 (Reuters) - Kering will bundle its jewelry operations with brands like Boucheron and Pomellato in a dedicated new division under the leadership of veteran executive Jean-Marc Duplaix, the group said on Monday.
Purpose and Leadership of the New Division
The step aimed at bundling oversight of the brands and their production capacities comes as part of a wider group overhaul engineered by former Renault boss Luca de Meo, Kering's chief executive.
Jewelry Market Position and Industry Trends
The jewelry sector is seen as less exposed to the cycles of the fashion industry and helped some of Kering's main rivals like Cartier-owner Richemont generate growing profits despite a wider sector downturn.
Growth Opportunities and Expansion Plans
De Meo told journalists last month he saw jewelry, a category where Kering so far has a relatively small footprint, as an area to expand further.
Centralization and Operational Changes
He also said the group, which historically operates more like a holding structure than an operational hub, needed more centralization of key roles to boost its brands, many of which have been facing falling sales lately.
Financial Reporting Adjustments
The group also announced it would change the way it reports its financials.
New Corporate Reporting Structure
Per its new corporate reporting structure, Kering will break down quarterly revenues for its Fashion & Leather Goods, Jewelry and Eyewear branches.
Brand-Specific Revenue Disclosure
Among its individual brands, it will only spell out those of its largest Gucci brand going forward, the company said.
(Reporting by Jakob Van Calster and Tassilo Hummel; Editing by Makini Brice)
