Growth in US Watch and Jewelry Sales Slows in May
July 03, 24
(IDEX Online) - The growth in watch and jewelry sales in the US slowed again in May, for the third consecutive month, according to the latest year-on-year estimates by the US Department of Commerce.
Sales are still increasing - generally among multi-line retailers rather than specialty jewelers - but the rate of increase is less.
Sales were marginally higher this May than in May 2023 - up by 1.4 per cent - with tough trading conditions showing few signs of improvement.
In April sales were 2.7 per cent higher, year-on-year, in March they were up 4.5 per cent and in February they rose by 5.0 per cent.
These revised figures cover sales by Amazon, Costco, Walmart and other multi-line retailers, accounting for around two thirds of all watch and jewelry sales in the US, as well as specialty jewelers.
The Department of Commerce no longer provides a breakdown of specialty jewelers so we are using sales figures published by Signet, the largest specialty jewelry group in the US, with over 2,700 stores, as an indicator of how the specialty sector is faring.
As the graph below shows, Signet sales are recovering, but more slowly than the industry generally.
Signet reported same store sales down 9.2 per cent year-on-year in North America during the fiscal quarter to 4 May (compared with 10.0 per cent in the previous quarter).
The company - which includes the Kay, Zales, Jared and Blue Nile brands - also reported a net loss of $40m for the same period, blaming fewer engagements and increased competition from heavily-discounted lab growns.
By contrast the multi-liners are now performing better than last year. Total US jewelry sales - of which they account for two thirds - were up 5.1 per cent in Q1 2024, after a 3.4 per cent rise in Q4 2023.
Jewelry sales in the US rose by 1.5 per cent during May (2.7 per cent in April), according to Department of Commerce figures. Watch sales were up by 0.9 per cent during May (2.6 per cent in April), an average increase of 1.4 per cent.
Revisions to US Department of Commerce figures, based on actual transactions rather than estimates, show sales in March and April were significantly less than first reported. April's 4.7 per cent hike in sales has been revised down to 2.7 per cent. March has been reduced from 5.7 per cent to 4.5 per cent.
Despite the slowdown in consumer spending in the early months of 2024, most retail forecasters are still predicting a pick-up in consumer demand later this year, as inflation eases, largely due to the Fed's anti-inflationary programs.