US Watch and Jewelry Sales: The Recovery Continues in July
September 03, 24
(IDEX Online) - Watch and jewelry sales in the US picked up again in July, as inflation eased slightly, unemployment dipped and overall retail sales outperformed forecasts.
The 5.9 per cent increase for watch and jewelry sales was the highest so far this year, after the US Department of Commerce adjusted the June figure down from 6.2 per cent to 4.2 per cent.
It's the ninth consecutive month of growth in the watch and jewlery sector after a year of dwindling sales.
And it's the third consecutive month of increased year-over-year sales - 3.0 per cent in May, 4.6 per cent in June and now 5.9 per cent in July.
Revisions to figures for April, May and June by the Bureau of Economic Analysis (BEA) at the US Department of Commerce show sales were lower than initially reported.
Pandora, the world's largest jewelry maker by production volume, reported a 5 per cent like-for-like sales growth in the US during Q2, contributing to an overall 15 per cent organic growth globally.
And Brilliant Earth reported a slight rise in profit for the same period, despite slower sales.
Much of the recovery in the US is being driven by Amazon, Costco, Walmart and other multi-line retailers, which jointly account for around two thirds of all watch and jewelry sales.
The Department of Commerce no longer provides a breakdown for the remaining third - specialty jewelers - so we are now using Signet, the largest specialty jewelry group in the US, as a benchmark.
It is expected to release its next trading update around the middle of this month, which we will include in our next update.
The graph below shows demand for jewelry recovering in the US. The overall trend is upwards, despite some falls.
Jewelry sales in the US rose by 5.8 per cent during July (compared to 4.6 per cent in June), according to revised Department of Commerce figures. Watch sales were up by 6.7 per cent, compared to 4.7 per cent in June. The overall increase for July was 5.9 per cent, compared to 4.6 per cent in June.
