Titan Jewelry Sales Drop Amid Global Uncertainty

RAPAPORT… Titan Company’s jewelry revenue declined at the start of 2022 as a fresh coronavirus wave and the Russia crisis dampened consumer spending.

Sales for the segment dropped 4% year on year in the fourth fiscal quarter, which ended March 31, the Indian jewelry retailer reported last week.

The downturn reflected an unfavorable comparison with a period of strong recovery a year earlier, the company, which owns the Tanishq brand, explained in an update to the Bombay Stock Exchange (BSE). In addition, activity slowed in major cities in January because of an outbreak of the Covid-19 Omicron variant. February saw a rebound, but demand fell again in March as gold prices rose and the “external geopolitical conflict” dented sentiment, the company noted.

“Though the plain-jewelry category bore the brunt of gold volatility in [March 2022], leading to a slight decline for the quarter, studded sales clocked in a high-single-digit growth, thereby partially cushioning the impact,” management commented. Overall, store traffic fell slightly, but the conversion rate and average ticket size grew.

Sales of watches and wearables increased 12%, while e-commerce business CaratLane enjoyed growth of 51%.

The group is set to publish full sales data — including revenue figures — in the coming weeks.

Image: A Tanishq store. (Titan Company)