National Jeweler Network

Financial Reporting

Gitanjali still has eye on U.S. expansion

November 15, 2013

Mumbai--Gitanjali Group’s U.S. sales grew 12 percent year-over-year in the first two quarters of the fiscal year, and the company remains focused on expanding in markets outside of India.

Globally, Gitanjali’s sales in the first half of the fiscal year, ended Sept. 30, fell 5 percent, from $116.4 million to $110.2 million, the company reported Thursday.

Net profit dropped 75 percent.

Despite the slowdown, Gitanjali noted “strong” growth in the U.S. market specifically, and said that growth is expected to continue at the same pace.

The company also noted, for the second quarter in a row, that it is focusing on markets outside of India, including the United States.

It said it intends to further strengthen and consolidate its international portfolio, with a focus on capitalizing on high-margin mature markets, like the U.S.

During Gitanjali’s second quarter, speculation arose that the chain was looking to acquire recovering U.S. retailer Zale Corp., one of the country’s largest specialty jewelers. Nehal Modi, chairman of Gitanjali USA, said any rumors are conjecture at this point, and a Zale spokeswoman said the company does not comment on rumors.

However, in its second quarter earnings release issued last week the retailer said it is focusing on expanding in certain geographies, including the U.S., both “organically and inorganically,” a statement it also made in the first quarter.

A Mumbai-based retailer and manufacturer, Gitanjali operates Samuels Jewelers Inc. in the United States, which includes the Rogers, Samuels, Andrews and Schubach Jewelers chains as well as Samuels Diamonds.