RAPAPORT... Titan Company Ltd., owners of the Tanishq jewelry brand in India, reported that sales declined 7.6 percent year on year to $466.4 million (INR 28.54 billion) in the first quarter that ended on June 30. Profit after taxes fell 3 percent to $29 million (INR 1.77 billion).
The company anticipated lower sales as a result of difficult comparisons given such an unprecedented first quarter one year earlier, at which time Titan's jewelry sales surged 47 percent as a result of a drop in gold prices.
Comparatively, this year, Titan's jewelry sales fell 10 percent in the first quarter to $380 million (INR 23.25 billion), impacted adversely by continued regulatory pressures. The company's watch sales recorded healthy growth, however, and rose 10 percent to $71.9 million (INR 4.399 billion).
“The consumer discretionary spend in the quarter was far more stable than what we witnessed in the past few quarters. With stability in the political environment, the market mood has been positive," Titan's managing director, Bhaskar Bhat, said.
The company plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches.
During the quarter, Titan added 22 retail outlets across all its divisions. The company's retail chain includes 1,100 stores countrywide with plans to expand its watches, jewelry and eyewear divisions.
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