Sales at India’s Titan Company slowed in the first quarter of the fiscal year due to rising gold prices affecting consumer demand.
Revenue from Titan’s jewelry segment, which includes brands like Tanishq, Mia, and CaratLane, increased by 9% year-on-year for the three months ending June 30. This growth came despite a 20% rise in gold prices during the same period. However, this year’s growth rate is lower compared to a 21% increase in the same quarter last year.
The company also noted that the number of auspicious wedding dates was lower this year compared to the previous year, impacting sales. In India, gold jewelry is traditionally purchased for weddings. Additionally, while demand for plain gold jewelry saw a high single-digit increase, the demand for gemstone-studded jewelry, including diamonds, was “moderately lower,” the company said.
Despite these challenges, sales were buoyed by the inclusion of the Akshaya Tritiya holiday week, a popular time for weddings, and a higher average selling price overall, Titan observed.
Revenue from the watches and wearables segment rose by 15% year-on-year in the first quarter.
Titan also reported revenue from its eyewear segment, as well as other businesses including fragrances and fashion accessories.
