The U.S. consumer price index (CPI) for jewelry in the month of July jumped 11.9 percent year on year to a record high of 176.46 points, marking the seventh consecutive month with a reading greater than 170 points. The July reading broke the previous record high of 176.24 that was set in June. Jewelry inflation has been driven higher by continued strong year-on-year price increases for diamonds, gold and silver.

Furthermore, the CPI has now been above 150 points for 42 consecutive months. The jewelry price index is based upon the reference point of average prices in 1986, which is set at 100 points. Meanwhile, the CPI for all product categories rose 3.6 percent year on year in July to 225.43 points. The base period for that overall reading was provided by an average of 100 points taken from 1982 to 1984.

Signet U.S. Sales Rise

Signet’s second-fiscal-quarter total sales rose 10.8 percent year on year to $797.6 million. Same-store sales rose 9.9 percent and net income surged 71.3 percent to $66.3 million or 77-cents per share. U.S. operations experienced an 11.3 percent increase in sales at $643 million and same-store sales rose 12.2 percent, while U.K. sales rose 8.8 percent to $154.6 million and same-store sales increased 1.4 percent. In terms of local currency, U.K. sales were flat. 


The average unit-selling price for U.S. stores rose 13.5 percent to $462, excluding the charm bracelet category, while the average price per item sold in U.K. stores rose 5.3 percent to about $161.

Mike Barnes, Signet’s chief executive officer (CEO), explained that a “powerful combination” of presenting differentiated and sought-after merchandise, development of brands and a superior in-store customer experience led to strong results during the first half.

As of July 30, Signet operated 1,850 specialty retail jewelry stores with 1,314 locations in the U.S. under the names Kay Jewelers, Jared the Galleria of Jewelry and a number of regional names. Signet U.K. operated 536 stores under the names of H.Samuel, Ernest Jones and Leslie Davis.

Tiffany & Co. Sales Rise

Tiffany & Co. reported “substantially higher-than-expected sales and earnings growth” in the second quarter that ended on July 31, 2011. Worldwide net sales rose 30 percent year on year to $872.7 million due to strong growth in all geographic regions. Same-store sales were up 22 percent. Net earnings jumped 33 percent to $90 million.

By region, Tiffany & Co. reported a 25 percent year-on-year increase in sales for the Americas at $438.2 million and comparable-store sales rose 23 percent. Sales from the New York flagship store, specifically, increased 41 percent in large part due to strong foreign tourist demand.

Tiffany & Co. sales across Europe increased 32 percent to $101.3 million. In the Asia-Pacific region, sales increased 55 percent to $173.2 million. Tiffany & Co. reported growth in most countries in the region, with the largest increase in the greater China region. In Japan, sales rose 21 percent to $142.5 million.

For the first half, worldwide net sales rose 25 percent to $1.6 billion. Net earnings rose 30 percent to $171.1 million, compared to $132.1 million for the comparable period in 2010.

Michael J. Kowalski, the chairman of Tiffany & Co., noted that the strong growth reflected the company’s growing global appeal. ‘’In addition, we have been able to absorb precious metal and gemstone cost increases while improving our gross and operating margins,” he said.

Double-Digit Rise in Online Sales

U.S. online retail sales rose 14 percent year on year to $37.5 billion during the second quarter of 2011, according to metrics firm comScore Inc. This growth rate represented the seventh consecutive quarter of positive growth and the third consecutive quarter of double-digit growth. The company tracks online retail sales, excluding travel, auctions, automobiles and large corporate purchases.

The rate of growth was primarily the result of an increase in the number of buyers, which jumped 16 percent, with 70 percent of all internet users making at least one online purchase in the quarter. The top-performing online product categories in the quarter, which grew at least 15 percent year on year, included consumer electronics, hardware and software, and event tickets. The top 25 online retailers accounted for 66.4 percent of dollars spent online, down from 67.7 percent one year ago, according to comScore.

Gitanjali Reports Strong Sales

Gitanjali Gems Ltd. reported that sales rose 39 percent year on year to $573 million (INR 25.95 billion) for its first fiscal quarter that ended on June 30, 2011, driven by the company’s diamond and jewelry segments. The company’s net profits grew about 57 percent to $27.2 million (INR 1.23 billion).

The Mumbai-based integrated diamond company’s sales at its diamond business increased 36 percent to $285.2 million (INR 12.92 billion), while jewelry sales gained by about 37 percent to $300.6 million (INR 13.62 billion). Other sales, including revenue from its lifestyle and infrastructure businesses, rose nearly 33 percent to $1.1 million (INR 48.3 million).



Gitanjali, which has operations in the U.S., U.K., Belgium, Italy, the Middle East, Thailand, China and Japan, reported that its international sales grew about 29 percent to $374.5 million (INR 16.96 billion) and its domestic sales surged 64 percent to $198.5 million (INR 8.99 billion) during the quarter.



Mehul Choksi, the managing director, said that Gitanjali is planning to establish a more visible retail presence in China and expects to open 500 to 600 stores in India in the current fiscal year, which ends on March 31, 2012.

Bidz.com’s Revenues Down

Bidz.com, an online jewelry retailer, reported that net revenues fell 22 percent year on year to $20 million in the second quarter that ended on June 30, 2011. Merchandise sales declined 23 percent to $18.3 million and wholesale sales dropped 17 percent to $1.6 million. In a statement, the company explained that the decline in revenues was “primarily the result of reduced demand in jewelry and the change to the company’s new website in March.”

During the first six months of the year, Bidz’s net sales of merchandise fell 17 percent to $41.4 million, while its net loss widened to $5.7 million from a loss of $764,000 a year earlier.

Leon Kuperman, the president of Bidz.com, expressed disappointment with the results, but noted that both its Bidz.com and Modnique.com websites have shown improvement in sales since the reporting period closed. While Bidz.com focuses on auctions of jewelry, watches and accessories, Modnique.com features designer products and consumer goods.

Bidz also reported that it no longer meets the requirements to be listed on the NASDAQ stock market after its shares closed below $1 for 30 consecutive trading days.

Blue Nile’s International Sales Up

Blue Nile’s net sales rose 5.1 percent year on year to $80.52 million during its second quarter that ended on July 3, 2011. By region, Blue Nile’s sales in the U.S. were flat at $67.72 million, based on Rapaport News calculations. International sales, however, jumped 40.7 percent in dollar terms to $12.8 million, a record high for any second quarter in the company’s history, while the rate of growth was 29.7 percent, excluding the impact of currency conversions.

Blue Nile expects third-quarter sales in the range of $71.5 million to $74 million compared with $67.5 million during third quarter 2010.

Blue Nile also announced that Mark Vadon will continue in his role as chairman of the board, but would no longer serve as executive chairman.