Financial Reporting

Gitanjali reports significant growth in US stores

Nov 15, 2011

Mumbai--Sales grew 26 percent in the second quarter for Gitanjali Gems Ltd. with the company’s U.S. retail stores turning in a strong performance, the Indian retailer and manufacturer reported Monday.

Net sales for the quarter ended Sept. 30 were $633.5 million, up from $501.9 million in the prior-year period. Profit rose 65 percent, from $16 million to $26.4 million.

For the six-month period ended Sept. 30, sales increased 32 percent to $1.15 billion. Net profit rose 61 percent to $51.1 million.

Though Gitanjali Gems Managing Director Mehul Choksi said sales momentum in smaller Indian cities has been the primary driver of growth, the company noted that its U.S. retail chain “has significantly grown, both in terms of sales and profitability.”

“We expect an overall jump in profitability due to this,” the company stated.

Based in Mumbai, Gitanjali is both a manufacturer and retailer of diamond jewelry, with three diamond polishing facilities and six jewelry factories, all in India.

In the United States, the company operates a total of 111 stores, according to National Jeweler’s 2011 list of Top 50 North American Retail Chains by store count.

All under the umbrella of Gitanjali USA, the chain’s nameplates are Andrews, Rogers, Samuels and Schubach Jewelers as well as Samuels Diamonds.

The chain ranks No. 35 on National Jeweler’s 2011 list of $100 Million Supersellers.

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