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Titan Company Sales Slide on Weak Consumer Sentiment
Aug 2, 2015 4:44 AM
By Avi Krawitz
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RAPAPORT... Titan Company, a Mumbai-based jewelry retailer, said total sales fell 6 percent year on year to $419.9 million (INR 26.87 billion) in the first quarter that ended June 30, 2015. Profit after taxes slumped 15 percent to $23.6 million (INR 1.51 billion).
“The first quarter this year has been an extremely challenging one,” said Bhaskar Bhat, Titan’s managing director. “Retail sales for both our core businesses, watches and jewelry, have been below expectations due to reduced walk-ins.”
• Jewelry sales fell 11 percent to $323.8 million (INR 20.72 billion), while profit before finance costs and taxes for the segment declined 17 percent to $28.2 million (INR 1.8 billion).
• Watch sales rose 9 percent to $75.7 million (INR 4.85 billion) with profit before finance costs and taxes grew 7 percent to $7.5 million (INR 481.3 million).
• Revenue at Tanishq, Titan’s flagship jewelry brand, fell 10 percent, while same-store sales dropped 12 percent.
• Studded jewelry accounted for 29 percent of total sales compared to 23 percent a year earlier.
• Sales were also hit by lower gold prices as consumers adopted a “wait -and-watch” approach.
• Group expenses declined 5 percent to $392.1 million (INR 25.08 billion).
• Titan added 22 stores during the year, bringing the company's total number to 1,223 as of June 30.
• Titan shares fell 4.65 percent in Friday trade on the Bombay Stock Exchange on publication of the earnings report.
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Tags:
Avi Krawitz, diamonds, India, Jewelry, Rapaport, Tanishq, Titan, watches
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