US Watch and Jewelry Sales Bounce Back
June 06, 22
(IDEX Online) - US sales of jewelry and watches rallied somewhat in April - up just over 18 per cent year-on-year - after a relatively disappointing performance in March. Sales for March, previously reported at just 8.5 per cent, have been revised up to 11 per cent, taking account of actual rather than estimated sales. Even so, they were the lowest since August 2020. Having said that, bear in mind that these are highly unusual times. Before Covid lockdowns, we were accustomed to year-on-year rises of one to three per cent, so by that benchmark all increases in the last couple of years have been significant.
Sales in April bounced to 18.2 per cent, but that's still lower than they have been for a long time. Year-on-year growth peaked last April - up by an unprecedented 218 per cent - indicating strong recovery from a very low base, but has since levelled off. Sales figures for February have been revised up slightly.
Jewelry sales rose by 18.6 per cent and watch sales were up 16.0 per cent during April, an average increase of 18.2 per cent.
The U.S. Department of Commerce has, for all practical purposes, ceased reporting sales by Specialty Jewelers. The last figures it released were for February 2021. Last month it published its first set of revisions in almost a year - revising down sales for virtually all months from January 2019 to February 2021 - but we've heard nothing since. IDEX Research will publish any new updates on specialty jewelers as and when they become available.
Assessment
Spending on watches and jewelry in the US showed some signs of recovery in April after a poor show in March. War, sanctions and inflation remain on the worry list, but overall consumer spending is holding up, with an 0.9 per cent increase from March to April.
Growth in sales of watches and jewelry was negligible in 2019, but improved in 2020 (apart from the first Covid months), and positively surged through 2021 to a decade-high figure of over $115bn.
The market remains uncertain, but the coming week could provide some clarity, as the industry converges on Las Vegas for the first JCK show since Covid hit.