Sales at India’s Titan Company slowed in the fiscal first quarter as the rising price of gold dented consumer demand.
Revenue from the company’s jewelry segment, which includes Tanishq, Mia and CaratLane, rose 9% year on year for the three months that ended June 30, with the price of gold increasing approximately 20% during the period, Titan said last week. That compares to a 21% jump for jewelry in the same period a year ago.
The lower number of auspicious wedding dates versus the previous year also harmed sales, the company observed. In India, consumers traditionally purchase gold jewelry for weddings. In addition, while the demand for plain gold jewelry grew in the high single digits, appetite for gemstone-studded jewelry, which includes diamonds, was “moderately lower,” the company added.
However, sales still advanced thanks to the inclusion of the Akshaya Tritiya holiday week when many weddings take place as well as a higher average selling price for overall purchases, Titan noted.
Revenue from the watches and wearables segment climbed 15% year on year in the first quarter.
Titan also generates revenue from eyewear, in addition to other businesses including fragrances and fashion accessories.
Image: A Tanishq store. (Titan Company)
Stay up to date by signing up for our diamond and jewelry industry news and analysis.
