Tiffany & Co.'s worldwide net sales increased 8% to $1.05 billion in the two months of the holiday period ended December 31, 2017 due to growth across regions and product categories, and comparable store sales rose 5%, the jeweler announced in a press release. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 6% with comparable store sales up 3%. The growh was fueled by higher sales of fine jewelry, watches, and a new home and accessories collection.
Vrai & Oro, the jewelry designer owned by laboratory-grown diamond producer Diamond Foundry, has closed its Los Angeles retail store after only six months. Despite several articles by the likes of Vogue announcing their partnership, and The Hollywood Reporter dropping Hollywood names like headliner Leonardo DiCaprio, the designer has come to the conclusion, "that retail is a true challenge." The Los Angeles fine jewelry label, which was purchased by Diamond Foundry in November of last year, opened a store in downtown L.A. at the ROW DTLA shopping center last August.
This debate shows the need for the industry to demonstrate the value of its products. The link between a diamond and love is clear and well-established. But while consumers don’t think twice about buying $300 sneakers, or $1,000 handbags, they regularly balk at spending a few thousand dollars on engagement rings. And yet, it takes a lot of painstaking craft to make a ring (of the non-$25 variety). It also takes a lot of effort and money to get diamonds out of the ground. Plus, consumers are buying a product that is intended to hold its value and truly last forever ...
Leading Chinese jewelry retailer Chow Tai Fook reported a 5% year-on-year increase in same store sales (SSS) for the three-month period ended December 31, 2017 (Q3 FY2018) in its key markets of Mainland China and Hong Kong & Macau, reflecting solidification of the recovery in demand and increasing points of sale. Overall retail sales value in Hong Kong and Macau was flat year-on-year for the third quarter, but recorded 12% growth in Mainland China.
Signet's total sales for the 9 weeks ended December 30, 2017 (“Holiday Season”) were $1,881.7 million, down $59.2 million or 3.1%, compared to $1,940.9 million in the prior year, the group announced in a press release today. Same Store Sales (SSS) decreased 5.3%. Sales declines were primarily driven by weakness in the Sterling division (Kay, Jared, R2Net and Regional brands), impacted predominantly by the credit outsourcing transition* which accounted for approximately two-thirds of the decrease. R2Net was the best performer in the division, increasing sales 38.6% to $50.6 million.
Sales of jewelry in the U.S. during the holiday season jumped 5.9%, largely driven by last-minute sales, with December 23 approaching Black Friday in terms of single-day spending, reports Mastercard SpendingPulse. They report that holiday sales increased 4.9 percent this year, setting a new record for dollars spent. This is the largest year-over-year increase since 2011 and a further indication of consumer confidence. Online shopping also saw large gains of 18.1 percent compared to 2016, boosted by a late season rally.
Independent analyst and consultant on diamonds and the mining industry, and publisher of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky has published a wide-ranging article comprised of quick diamond-industry stats and trends: "2018 Global Diamond Industry Primer". Here he lays out the current situation and developments as we bring the 2017 diamond year to a close, and identifies what to look out for in the year ahead.
Jewelers of America (JA) released the results of their US “Fine Jewelry Industry Consumer and Retail Market Study” conducted by Provoke Insights. The study surveyed two groups, the retailers and the consumers, and Michelle Graff listed some of the key findings.
Moda Operandi, the American online luxury retailer originally founded in 2011 as a platform to provide consumers access to full collections straight from the runway, has just received a brand-new influx of cash. Billionaire entrepreneur and executive director of Chow Tai Fook Jewellery Group Adrian Cheng and Apax Digital co-led its latest round of funding, which totals a massive $165 million in growth capital. That number doubles Moda Operandi's total funding, which had reached more than $130 million as of its Series E round in February 2015.
Two leading Hong Kong-based jewelry retailers, Chow Tai Fook and Luk Fook, delivered strong results in the second quarter of their respective financial years ending September 30 2017, signalling the sustained recovery of the Greater China market after a prolonged slump. Chow Tai Fook reported a 15% increase in retail sales in Mainland China and a 12% rise in Hong Kong and Macau compared to the same period a year ago. Luk Fook, reporting only same-store sales (SSS), reported 17% growth year on year, including a 16% increase in gem-set jewelry.
An increase in wholesale sales of diamonds, strong growth in e-commerce sales and new store openings help Tiffany & Co. beat earnings estimates despite the fact that same-store sales declined for the seventh straight quarter. For the second quarter (ended July 31, 2017), the renowned luxury retailer reported a 9% rise in net income to $115 million, up from $105.7 million during the same period a year earlier, on net sales of $960 million. Analysts had expected the company to earn revenue of $930.3 million.
Signet's total sales for the Second Quarter of fiscal 2018 were $1.4 billion, up $26.2 million or 1.9%, compared to a decrease of 2.6% in the 13 weeks ended July 30, 2016 (Q2 2017). However, the jeweler’s first-half sales fell 5% to $2.8 billion, with profit sliding 25% to $171.9 million. The company also announced that it has agreed to acquire R2Net for $328 million in an all cash transaction.
Chow Tai Fook launched CHOW TAI FOOK T MARK, a new jewelry brand with diamonds exclusively from their ‘T Mark’ collection. Each stone is inscribed with the brands patented technology enabling customers to track the stones journey from sourcing - processing, cutting, polishing, authentication, design - to production.
Signet Jewelers Limited has been recognized for its corporate social responsibility and sustainability efforts by being named as a component of the FTSE4Good US and Global Indices in 2017. Signet joins this group of other publicly traded companies with strong environmental, social and governance (ESG) practices. “Signet is proud of our commitment to reducing our energy consumption and raising our efficiency levels across our business.
Independent analyst and consultant on diamonds and the mining industry, and publisher of the Zimnisky Global Rough Diamond Price Index, Paul Zimnisky has published an in-depth article on the current state of the diamond industry as it heads into the second half of 2017. Reprinted from Paul Zimnisky Diamond Analytics, courtesy of Paul Zimnisky.
Statistics from the jewelers Board of Trade (JBT) show that the trend of increasing of business closures in the North American jewelry industry continued in the second quarter of 2017, but at a slower pace than previously, reports JCK's Rob Bates. In fact, there were 48% fewer closures in Q2 2017 than Q2 2016, from 475 to to 245 closures in the period. As Bates clarifes though, "the consolidation trend hasn’t totally reversed itself: The number of jewelry companies is still shrinking. In June, the JBT recorded 27,706 businesses.
Diamond trader and brick & mortar crusader Melvin Moss is back at his provocative best in his most recent diatribe, "The #Diamond Family is Dysfunctional". He argues that major diamond miners producing too much rough at prices unsustainable for the rest of the industry (which deals with underpriced polished) and are extending their reach across the pipeline at the expense of everyone else - particularly retailers. "The diamond pipeline is dysfunctional", he writes. "Miners have a primary obligation to their shareholders.
Chow Tai Fook continued its upward sales trend during Q1 2017 (three months ended June 30), as retail sales increased 17% in value in Mainland China and 7% in Hong Kong and Macau. After 12 consecutive quarters (3 years) of same store sales decline in Hong Kong and Macau, dating back to Q4 2014, the Hong Kong-based jeweler has now experienced growth for the second quarter in a row. Same-store sales growth in the two regions amounted to 11% and 5%, respectively.
Tiffany & Co. announcd Thursday that it has named veteran luxury industry executive Alessandro Bogliolo as its next chief executive officer. Bogliolo most recently served four years as the chief executive of apparel and accessories company Diesel, and his resume includes 16 years at luxury jeweler, Bulgari, including in the roles of chief operating officer and executive VP of Jewelry, Watches & Accessories.
The market for recycled diamonds has grown substantially in the last decade following the financial crash of 2008, and though it is hard to guage the market as a whole due the less-than-transparent avenues through which they are bought and sold, estimates are that the trade in recycled diamonds is now worth between five and ten percent of the global market - or approximately $1 billion - and is expanding. Abraham Dayan, writing for Rough-Polished, looks at some of the players in this growing market, the advantages it provides for manufacturers in need of affordable supply and retai
JCK news director Rob Bates takes a look at the resurgence of independent bookstores in the U.S. and sees parallels with independent jewelry retailers: "It’s clear the jewelry industry - and in particular the number of independent jewelers - is shrinking. But that’s true of retail overall. And, until recently, it was true of independent bookstores. If you compare today versus decades ago, the number of brick-and-mortar booksellers has fallen. But the independent segment has reversed that trajectory. The number has risen for the last eight years.
Online coupon search site and retail trend analyst CouponFollow recently released The Millennial Shopping Report, tracking the behavior of those born between 1982 and 1996, who now constitute "the largest generation in human history", with over 80 million members in the U.S. alone. CouponFollow claims that Millennials spend $600 billion annually and are, "poised to inherit $30 trillion from their Baby Boomer parents"; they already account for 28% of all daily per-person consumer spending, and it is suggested that could rise to 35% by 2030.
Hong-Kong based Chow Tai Fook jewelry Group, China's largest jeweler by market value, reports a 3.9% growth in net profit for the financial year which ended March 31, 2017, indicating a return to profit following a sales decline in Hong Kong and Macau, dating back to Q4 2014. The company told the media that although they had seen a stronger second half, a full-fledged recovery was still some time away.
Luxury houses such as Cartier, Piaget and Chanel have launched collections on Net-a-Porter and are doing well, despite critics of the format. Cartier made a relatively risky move by placing Panthère de Cartier, a white gold diamond watch retailing for US$77,000 (HK$600,000) on the online platform Net-a-Porter. Within two weeks of the collection’s launch, the watch was sold. Of course some ‘purists’ believe that luxury products must be felt to create an emotional engagement, which is hard to replicate online.
The lastest disruptive online diamond sales platform, a "reverse auction site" startup called Legemdary, purports to serve the interests of diamond buyers and wholesalers by cutting out retailers altogether, writes Rachelle Bergstein for Forbes, introducing the company to a global audience. Legemdary calls itself the only straight to wholesale online diamond marketplace, connecting prospective engagement ring buyers directly with wholesalers who bid to supply the consumers' needs.
Debra LaBudde launched Memo, an ecommerce site that specializes in fine jewelry. The name of the brand refers to the consignment practices within the jewelry and diamond industry, wich served as the inspiration for her concept. LaBudde noticed there was an untapped market for fine jewelry, “(I saw) an interesting opportunity in the marketplace that, in my mind, hasn’t been well served, and that ultimately could create a larger market.”
Everlane’s founder, Michael Preysman, who sells classic designs over the internet by promising “radical transparency”, believes he has identified the issues Millennials have regarding provenance and price. He pledges low-cost, high-quality goods made in factories used by designer brands, thus making them more appealing to their consumers. Everlane has a studio in Soho, New York, where shoppers are encouraged to try on the products and then return home and purchase their goods online, an inventive way of combining retail and ecommerce.
The French luxury group Kering reported a strong first quarter, with group revenue rising by 31% y-o-y basis to $3.89 billion. Sales from its luxury activities for the same period totaled $2.63 billion, up by a steep 34%. The sales growth in the group’s directly operated store network increased significantly to 36.6%, as a direct result of the remarkable performance in Western Europe and the Asia Pacific area, which reported sales increases of 49.9% and 46.7% respectively.
Chow Tai Fook has partnered with luxury travel retailer DFS Group, a subsidiary of LVMH, to open its second boutique in the United States on the Hawaiian island of Oahu. The Hong Kong-based jeweler’s branded store will launch in T Galleria by DFS in the heart of Honolulu and close to the iconic Waikiki Beach. T Galleria by DFS is a prime shopping destination for travellers seeking leading international luxury brands; Hawaii is a popular wedding and honeymoon destination, with jewelry fast becoming a key retail category for travellers to the islands.
The world’s largest jeweler, Hong-Kong based Chow Tai Fook, reports strong retail sales growth in the fiscal fourth quarter, reversing 12 consecutive quarters (3 years) of same store sales decline in Hong Kong and Macau, dating back to Q4 2014. The uptick was strongest in Mainland China, where overall retail sales value increased 16% while same store sales rose 12%. Overall and same store sales in Hong Kong and Macau rose by 1% and 4% respectively.
The De Beers Group made headlines last month when it announced the end of its joint venture with LVMH with the aquisition of their 50% share in De Beers Diamond Jewellers (DBDJ), a move that Chaim Even-Zohar characterizes as, "brilliant and long overdue." He writes, "With De Beers at the helm, the venture will get a realistic chance to succeed.
Necklaces with detachable pendants that double as brooches, tiaras fit for royalty that can also be worn as bracelets, and earrings which can transform into haircombs are making their way back this season. High Jewelry brands such as Chaumet, Van Cleef & Arples, Cartier, Bulgari and Graff have re-embraced the notion of transformable jewelry. The versatile trend is“perfectly adapted to our times,” says Jean-Marc Mansvelt, CEO of Chaumet.
LVMH Moët Hennessy Louis Vuitton, the world's largest luxury producs group, recorded revenue of 9.9 billion Euros ($10.51 billion) for the first quarter 2017, an increase of 15%. Organic revenue (with comparable structure and constant exchange rates) growth was 13% compared to the same period of 2016, an increase attributable to all business groups.
With 850 million active users monthly, western luxury brands have been quick to embrace China’s “most important platform for luxury brands”, WeChat. Local and international brands have realised the potential of the platform to make them key players in China’s $103 billion jewelry market. Western companies have used it for flash sales as well as marketing and customer interaction. While these flash events have spurred sales, China’s online sales remain limited, says Antoine Pin, managing director of Bulgari in greater China.
Fun fact: Retail trade lost more jobs in the past 2 months than coal mining lost in the past 20 years.
Economist Paul Krugman responding to Bloomberg article, "America’s Retailers Are Closing Stores Faster Than Ever"
Speaking at the Antwerp World Diamond Centre (AWDC) Café - a monthly guest lecture series at AWDC - diamond industry analyst Edahn Golan addressed the latest trends in the U.S. retail jewelry market. Drawing on actual point-of-sale data gathered by NPD Group from thousands of retail doors in the U.S., including major jewelry chains and hundreds of independent jewelers, Golan notes that the industries tracked by NPD in the U.S.
Fashion and jewelry houses are stunned by the latest shopping trend: See-now, Buy-Now. Consumers nowadays desire instant gratification and no longer wish to wait between seeing an outfit on the runway and being able to purchase the look. This trend is likely due to the increase in women who are buying jewelry and designer clothes for themselves. “They buy jewelry like they buy fashion, so are more spontaneous now,” said Nicolas Bos, chief executive of Van Cleef & Arpels.
Every marketeer has spent countless hours strategizing on how to target millennials, which has led them to neglect an important audience: introducing the Midult. Paula De Luca, creative director of trend forecasting company Trendvision, defines the midult as a women between the ages of 35 and 55 who has spending power – in other words, a Generation X female, born between 1960 and 1980. Following millennials and baby boomers, Gen X is the third largest generation in America, making up 25% of the 60 million adults in the U.S.
Stéphane Fischler, President of the International Diamond Council, founding member of the European Council of Diamond Manufacturers, Vice President of the World Diamond Council and President of the Antwerp World Diamond Centre talks to Manisha Gupta on India's CNBC-TV18. He shared his view of the Indian diamond industry and the road ahead for its diamond market. An abbreviated version:
CNBC: How do you see diamond consumption growth in India?
The Gem and Jewelry Export Promotion Council (GJEPC) will host the International Diamond Conference, "Mines to Market 2017", to be held on March 19 and 20, 2017 in Mumbai. It will gather leading miners, diamantaires, retailers, bankers and analysts from across the globe on a single platform to discuss issues faced by the global diamond industry, such as supply and demand, marketing and financing, and will cover all aspects of the diamond pipeline including mining, midstream, marketing & retail, international finance, valuation with KP and diamond certification.