Swarovski reports sales growth in 2022 – WWD
MILAN- The strategic realignment at Swarovksi is having a positive effect.
The family company Swarovski Crystal Business reported on Friday a 10 percent increase in sales to 1.83 billion euros in 2022 compared to the previous year.
“These encouraging results confirm that our strategic direction is right and that our iconic brand and product have exceptional potential,” said Alexis Nasard, who was appointed chief executive officer last July. “We have made an encouraging start in all markets, including China, and our focus in 2023 will be on the disciplined execution of our new LUXignite strategy and business plan, with an emphasis on product innovation and continued investment in our retail network and key brand moments. ” he added.
The LUXignite strategy includes the newly created diamond collection and curated shopping experiences.
Nasard is the first non-Swarovski CEO in the brand’s 128-year history, marking the latest step in the transformation from family-run to family-owned. He took the helm at Swarovski after 17 years at Procter & Gamble, six years at Heineken and five years as CEO of Bata, followed by Kantar.
In 2022, the company posted its strongest growth in seven years, driven by a 15 percent jump in the jewelry category. Retail sales were up 13 percent and B2B crystals were up 5 percent.
Online sales grew 5 percent and accounted for 20 percent of retail business.
The company commended the progress made in transforming the business model, including product development, organizational simplification and brand development.
The new jewelry collections, retail concepts WonderLux and WonderColor, and brand campaigns featuring Bella Hadid, conceived by Creative Director Giovanna Engelbert, helped strengthen Swarovski’s positioning.
In October, Nasard told WWD he was keen to further develop and grow two relevant initiatives for the company: the Creators Lab project, launched in 2021, and Swarovski Created Diamonds.
The executive has revived the former through a collaboration with Aquazzura, which reportedly marked the first in a series of drops in September. Swarovski also inked a new collaboration with BMW for the new Series 7 and with Golden Goose. Dedicated to developing innovative designs and collectibles in collaboration with international brands, Swarovski’s platform already has a long list of partnerships. Previous connections have resulted in custom Amina Muaddi sandals, Judith Leiber handbags, Nike Women’s Air Force 1 LXX sneakers, a Nutcracker statuette by FAO Schwarz and a crystallized basketball developed with streetwear brand Market. In October, Swarovski Creators Lab also launched its first ready-to-wear collaboration with Advisory Board Crystals.
In parallel, after a successful pilot in key US locations, the company is launching its Swarovski Created Diamonds jewelry collection in 200 stores in that market and Canada over the next year and on its online platform starting November last year.
The Austrian crystal house has offered lab-grown diamonds as part of its business-to-business portfolio since 2016, and Nasard sees the move into fine jewelry as a natural progression for the brand.
Late last year, Swarovksi also signed a 10-year license deal with EssilorLuxottica for eyewear, replacing a previous license with Marcolin.
Renovation of the Swarovski brand’s 2,400 store network advanced with a location upgrade in line with the brand’s repositioning, and like-for-like sales increased 10 percent.
A sprawling flagship store opened in New York on Fifth Avenue in November, following the opening of a new unit in Shanghai early last year.
The Swarovski Crystal Business has a global reach with around 4,400 multi-brand stores in more than 150 countries and a total of 18,000 employees worldwide. Together with the sister companies Swarovski Optik (optical devices) and Tyrolit (abrasives), the Swarovski Crystal Business forms the Swarovski Group.
https://wwd.com/business-news/financial/new-strategic-direction-swarovski-top-line-1235563551/ Swarovski reports sales growth in 2022 – WWD