Consumer Confidence Drops
The Conference Board Consumer Confidence Index dropped in
August to its lowest level since November 2011. The Index, which had improved
in July, now stands at 60.6 (1985=100), down from 65.4 in July. The Expectations
Index decreased to 70.5 from 78.4. The Present Situation Index, however, was
virtually unchanged at 45.8 versus 45.9 a month ago.
Consumers’ assessment of current conditions was little
changed in August. However, consumers’ optimism about the short-term outlook
deteriorated in August. The percentage of consumers expecting business
conditions to improve over the next six months declined to 16.5 percent from 19
percent, while those anticipating business conditions will worsen increased to
17.7 percent from 15.1 percent. Consumers’ outlook for the labor market was
also less favorable. Those expecting more jobs in the months ahead decreased to
15.4 percent from 17.6 percent, while those anticipating fewer jobs rose to
23.4 percent from 20.6 percent.
U.S. Jewelry CPI Falls
The U.S. consumer price index (CPI) for jewelry fell 2.9
percent year on year in July to 172.28 points. This was the largest
year-on-year decline since December 2005. However, the CPI remains historically
high and July’s reading marked the nineteenth consecutive month with a reading
of more than 170 points.
Meanwhile, the CPI for all product categories combined in
July rose 1.4 percent year on year to 228.72 points. This reading was the
highest in two months, but still below the record high of 229.18 points set in
April.
Signet’s Sales Rise
Signet Jewelers reported that sales increased 7 percent year
on year to $853.9 million for the second quarter that ended on July 28.
Same-store sales climbed 7.1 percent, increasing at all of the group’s brand
stores, which include Kay and Jared in the U.S. and H.Samuel and Ernest Jones
in the U.K.
Sales in the U.S. division rose 9.2 percent to $701.9
million and same-store sales were up 8.2 percent, while U.K. division sales
improved 1.4 percent at constant exchange rates and comparable-store sales rose
2.1 percent.
Signet anticipates same-store sales growth in the low to mid
single-digit range for the third quarter.
Zale’s Sales Increase
Zale Corporation reported that revenue rose 7.9 percent year
on year to $407 million during the fourth fiscal quarter that ended on July 31.
Same-store sales rose 8.3 percent.
The U.S. brands, which include Zales Jewelers, Zales Outlet
and Gordons Jewelers, experienced a comparable-store sales increase of 11.2
percent. In Canada, same-store sales at Peoples Jewellers and Mappins Jewellers
rose 2 percent. However, that number rose to a 7.1 percent increase at a constant exchange rate.
Zale reported a loss of $19.7 million compared with a loss
of $32.6 million one year ago.
Theo Killion, Zale’s CEO, noted that significant progress was made in
returning the company to profitability.
Tiffany & Co. U.S. Sales Fall
Tiffany & Co.’s worldwide net sales rose 1.6 percent
year on year to $886.6 million for the second quarter that ended on July 31. On
a constant-exchange-rate basis, worldwide sales rose 5 percent year on year,
while sales fell 1 percent to $434 million across the Americas. Sales increased
3 percent in Asia-Pacific and 10 percent in Japan. Sales rose 8 percent at
constant-exchange rates for Europe.
Sales declined 9 percent year on year at Tiffany & Co.’s
New York flagship store, while comparable branch store sales declined 4 percent
in the U.S. Combined internet and catalog sales across the Americas rose 3 percent.
Michael J. Kowalski, Tiffany & Co.’s chairman and CEO,
said these results met earlier revised expectations.
Blue Nile’s Net Sales Up
Blue Nile’s net sales rose 13 percent year on year to
approximately $91 million in the second quarter that ended on July 1. Gross
profit was 18.9 percent compared with 21.3 percent for the second quarter of
2011.
Blue Nile reported that the number of new customers rose 32
percent year on year during the second quarter. By region, Blue Nile’s net
sales in the U.S., comprised of both engagement and nonengagement rings jumped
13 percent year on year to about $76.6 million, while international sales rose
13 percent to $14.4 million.
The online retailer disclosed that U.S. engagement sales for
the second quarter rose to $52.4 million from $43.9 million one year earlier.
But nonengagement sales were basically flat at $24.2 million.
Gitanjali’s Sales Soar
Gitanjali Gems Ltd. reported that net sales rose 31 percent
year on year to $612.1 million (INR 33.85 billion) during its first fiscal
quarter that ended on June 30. Growth was driven by strong performance for its
jewelry and diamond businesses.
Sales at the company’s diamond business grew 29 percent year
on year to $301.6 million (INR 16.68 billion), while jewelry segment sales
increased 36 percent to $330.2 million (INR 18.26 billion). Sales at its other
segments increased to $2 million (INR 113.3 million) from $873,725 (INR 48.3
million), while intersegment sales nearly doubled to around $22 million (INR
1.21 billion).
The company announced that it acquired a 15.3 percent stake
in Verite Co. Ltd., a Japan-based jewelry retailer, for an undisclosed amount.
The deal was made through Gitanjali’s Hong Kong-based subsidiary, Aston Luxury
Group Ltd.
Verite’s shares trade on the Tokyo Stock Exchange and it
operates a network of 101 jewelry retail stores in Japan. Gitanjali stated that
the acquisition will provide supply chain synergies to the group.
YOU MUST HAVE JAVASCRIPT ENABLED TO VIEW THE SLIDESHOW
Article from the Rapaport Magazine - September 2012. To subscribe click here.