Titan's Jewelry Growth Slows as Gold Prices Surge
July 10, 24
(IDEX Online) - The growth in jewelry sales at Titan slipped again in the three months to 30 June, as spiraling gold prices hit consumer demand.
Titan, part of Tata Group, the country's largest conglomerate, reported a 9 per cent year-on-year increase in sales for the quarter compared to an 18 per cent increase in the same quarter last year, and 23 per cent for the year before that.
The company provides percentage increases but does not disclose actual revenues. It opened 34 new jewelry stores, bringing the total to 699.
Titan's watches and wearables division, grew by 15 per cent during the quarter, up from of 6 per cent during the previous three months
"The auspicious week of Akshaya Tritiya witnessed double-digit growths (in Tanishq secondary sales) compared to the same period last year," the company said in its quarterly update. Tanishq is Titan's biggest jewelry brand.
"However, high gold prices (c.20 per cent growth YoY) and their continued firmness had an impact on consumer demand. Coupled with lower wedding days, overall sentiments were relatively muted."