Titan Sales Slump as Lockdown Hits India

RAPAPORT… Revenue at Titan Company dropped sharply in the past two months during India’s coronavirus lockdown, but the jewelry retailer noted encouraging signs as restrictions eased.

Jewelry sales fell more than 80% year on year in May and around 30% in June as shutdowns continued to affect the retail market, the company reported Tuesday. Most stores have now reopened, Titan added, without stating the time period in which the improvement occurred.

“The recovery has been better than originally envisaged on the back of [a] higher share of wedding-jewelry sales, despite the deferment of many weddings,” chief financial officer Subbu Subramaniam said in a statement. He also noted solid interest in cold coins from investors amid rising prices of the precious metal.

India entered lockdown on March 24 and has gradually lifted its restrictions outside containment zones. Titan has unlocked 83% of its stores, but some are operating with limited hours as governments continue their efforts to contain the virus’s spread.

Stores in non-metropolitan areas have seen better sales than the cities, as the pandemic has had less of an impact, Titan explained. This has contributed to a drop in the share of revenue coming from gem-studded jewelry, which is popular in larger cities.

Around 95% of stores under Titan’s Tanishq brand are open again, but they are often subject to disruptions when local governments enforce lockdowns, the company noted.

The company is expected to release full results for the first fiscal quarter ending June 30 in the coming weeks.


Image: A Titan store in Deoghar, Jharkhand. (Shutterstock)