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Departments
Retail Bulletin
The U.S. consumer price index (CPI) for jewelry eased again in December, falling
2.9 percent year on year to 176.87 points in response to marginally weaker prices for precious metals and gemstones. The index was also lower than November’s reading of 177.68 points. However, the CPI maintained an historically strong trend and December marked 24 consecutive months of a reading of more than 170 points. The CPI for all product categories combined in December rose 1.7 percent year on year to 230.98 points, which was slightly lower than the record high set in October and the lowest reading since September. In 2012, the CPI average rose 2.1 percent year on year to 229.61 points.
U.S. jewelry store sales jumped 8.2 percent year on year in November to $2.66 billion. For the January through November period, jewelry store sales increased 4.3 percent year on year to $24.51 billion. Advanced retail sales estimates for the month of December were not as strong
as U.S. department store sales dropped 3.3 percent year on year to $25.65 billion. The National Retail Federation (NRF), after predicting Christmas-season retail sales would increase by 4.1 percent, determined that consumer spending at the nation’s stores for the months of November and December combined rose only 3 percent to $579.8 billion. Online retail sales rose 11.1 percent, just shy of the group’s prediction of 12 percent.
YOU MUST HAVE JAVASCRIPT ENABLED TO VIEW THE SLIDESHOW - U.S. total sales reached $3.06 billion, an increase of 6.2 percent.
- Same-store sales rose 6.4 percent at Kay Jewelers and 1.2 percent at Jared,
the Galleria of Jewelry. - U.K. total sales of $644.5 million represented a 3.2 percent decline over 2011.
- Same-store sales at J. Samuel increased by .4 percent and by 1 percent at
Ernest Jones. - Consolidated ecommerce sales increased by 37 percent, reflecting a 44 percent increase in the U.S. and a 14 percent increase in the U.K.
JP Morgan downgraded Signet Jewelers from overweight to neutral and raised the price target from $56 to $59 per share. According to Benzinga, a financial media outlet, JP Morgan noted, “With its Kay and Jared divisions helping capture 9 percent to 10 percent share of the U.S. domestic specialty jewelry market, we continue to see ongoing opportunity for Signet to gain market share amid a turbulent environment. That said, we are concerned that a bearish setup into last week’s holiday print triggered a fast squeeze, repricing shares to a more reasonable multiple of 12 to 13 times.” — Additional reporting provided by Acquire Media.
The Swiss-based luxury group Richemont reported that its overall sales for the third quarter that ended on December 31were driven by robust jewelry sales and continued
retail channel momentum. However, Richemont noted that its wholesale channel was relatively weak, reflecting a cautious approach by the group’s retail partners in the
watch business. Sales at constant exchange rates rose 5 percent year on year to $3.8 billion
(EUR 2.86 billion) for the third quarter. While growth was observed across all segments, Richemont’s retail sales jumped 9 percent and wholesale sales were up 2 percent. Jewelry brand sales increased 4 percent; however, specialty watchmaker sales jumped 9 percent. By region, the Americas posted a strong sales increase of 13 percent to $601 million (EUR 452 million), while sales in Europe rose by 9 percent to $1.3 billion (EUR 1 billion) and Japan’s sales inched higher by 2 percent to $374 million (EUR 281 million). However, sales in the Asia-Pacific region were flat at $1.5 billion (EUR 1.1 billion).
Chow Tai Fook reported that group sales rose 4 percent year on year in its third fiscal quarter that ended on December 31, as market sentiment in Mainland China was weak. Same-store sales declined 8 percent. The company did not provide sales totals in its report. During the quarter, Chow Tai Fook’s sales in Mainland China fell 3 percent with
same-store sales declining 11 percent. The company’s sales in Hong Kong and Macau grew 11 percent, while same-store sales fell 6 percent. Chow Tai Fook opened a net 70 points of sale during the quarter, bringing its total to 1,802 as of December 31. The company explained that it stepped up its efforts to promote fashionable gem-set jewelry. As a result, that category accounted for 26 percent of total revenue, up from
23 percent in the first half of the year. Affordable luxury will continue to be the main driver of sales, the company explained. Article from the Rapaport Magazine - February 2013. To subscribe click here.
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