FinancialsMay 17, 2024
Richemont Appoints Van Cleef & Arpels’ Nicolas Bos as New CEOThe announcement coincided with its full-year results, with growth driven by its jewelry brands.
EditorsJan 11, 2012
Making sense of the holiday sales
As any retailer would tell you, it is difficult anymore to predict the ebbs and flows of the economy. This was as evident as ever on Tuesday, when three of the industry’s largest chains reported sales for the all-important months...
As any retailer would tell you, it is difficult anymore to predict the ebbs and flows of the economy. This was as evident as ever on Tuesday, when three of the industry’s largest chains reported sales for the all-important months of November and December.
News from Tiffany & Co. that “sales weakened markedly in the United States and Europe” over the holiday season surprised me. Tiffany has been one of the strongest performers in the market in recent years, seemingly one of the first jewelry chains to begin showing signs of economic recovery after the global meltdown.
Overall, same-store sales in the U.S. were up 2 percent for the chain. Sales declined 1 percent in the brand’s flagship store on Fifth Avenue in New York, with foreign tourists accounting for the bulk of the sales there. Same-store sales were up 3 percent in Tiffany’s branch stores.
Also interesting to note were the results from Zale Corp., where holiday comps were up 6 percent but there was a marked difference between the months of November and December. The chain’s comps climbed 10 percent in November but only 4 percent the next month.
While both Tiffany and Zale comped positive, their overall results have sparked concern among analysts that consumer spending is on the decline heading into the new year.
During a conference call Tuesday morning, analysts asked executives Sterling Jewelers about the results reported by Tiffany and Zale. They wanted to know if Sterling was concerned about Valentine’s Day given what seems to be a pattern of waning consumer spending. (Sterling executives said no.)
Zale’s December comps were less than half of what they were in November.
And Tiffany noted that sales weakened at the end of the year after three “very strong” quarters of better-than-expected sales and earnings growth. In this article, Forbes contrasted the results of Tiffany with that of high-end athletic apparel retailer Lululemon, which had a strong holiday season and raised its guidance. Forbes wonders if consumers are “reigning in their spending on jewelry.”
In reading all of this news over the past couple of days, it brought to mind something I reported early on in the holiday shopping season, during one of our many Black Friday wrap-up stories. In this story, one analyst noted that while consumers flooded stores right after Thanksgiving to take advantage of deals, they were less enthusiastic about
shopping thereafter. They were “tapped out,” the analyst said.
If consumers were “tapped out” in late November, how are they feeling now, as they sit amidst piles of bills that they accumulated buying holiday presents, throwing parties and traveling?
I think the answer is: Nobody really knows anymore.
More on Editors
The Latest
FinancialsMay 17, 2024
Watches of Switzerland’s Fiscal-Year Sales Flat Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Recorded WebinarsMay 17, 2024
Watch: Preparing for Trade Show SuccessJewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
AuctionsMay 17, 2024
Piece of the Week: Cartier’s Ring-Tailed LemurThis little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Weekly QuizMay 16, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 16, 2024
Christie’s Holds 2 Sales Despite CyberattackThough its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
AuctionsMay 16, 2024
Sotheby’s Withdraws 101-Carat Yellow Diamond from AuctionDespite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
ColumnistsMay 16, 2024
The PR Adviser: What the Designer Should’ve DoneLilian Raji gives advice to designers on how to make the most of great publicity opportunities.
SourcingMay 16, 2024
Lucapa to Shed Stake in Lesotho Diamond Mine The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
SourcingMay 14, 2024
Anglo American Confirms It Is Looking to Sell De Beers The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
