RAPAPORT... Two of the top US department stores noted strong jewelry
sales in the third fiscal quarter, even as their overall sales disappointed.
“In terms of specific results, our top-performing
merchandise categories in the quarter included fine jewelry, footwear, men’s
and women’s apparel,” J.C. Penney chief financial officer Bill Wafford said
last week on an analyst call transcribed by Seeking
Alpha. “Our fine-jewelry business once again delivered solid sales results,”
he reported. Comparative-store sales for the division increased, with strength
in categories such as modern bride, diamonds, gems and silver, Wafford added.
The retailer will also create a “destination” business for
jewelry, noting customers want easier shopping experiences and a fun place to
share with others.
“We have created differentiating elements that will deliver
on these imperatives,” J.C. Penney CEO Jill Soltau said. “A destination to
complete the look, the all-you zone, showcasing fashion jewelry and accessories.”
Macy’s, which also incorporates jewelry into a “destination”
business, saw solid sales in the category as well.
“We had strong performance in mattresses, fine jewelry,
fragrances, dresses, men’s active and men’s tailored,” Macy’s chief financial
officer Paula Price said on the company’s analyst
call.
The company is looking to its destination categories, which
account for 40% of the retailer’s total sales, to help drive holiday purchases,
Macy’s president Hal Lawton noted on the call.
“I think what I’d just say about our destination businesses
is they’re in great shape for the holiday,” he explained. “I’d highlight things
like our gifts under strategy and beauty, our holiday party-dress lineup, [and]
our elevated jewelry assortment.”
J. C. Penney’s revenue fell 10% to $2.38 billion in the
third quarter, which ended November 2, while sales at Macy’s dropped 4.3% to
$5.17 billion for the same period.
Image: Macy’s flagship Manhattan store. (Shutterstock)
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