Titan Q1 Update: Business grows 9% YoY; company adds 61 stores
Domestic jewellery sales grew 8% year-on-year, boosted by double-digit growth during Akshaya Tritiya. However, high gold prices and fewer wedding days dampened consumer demand compared to the previous quarter. Growth was primarily driven by increased average selling prices, while buyer growth remained in low single-digits. Tanishq expanded internationally with a new store in Muscat.
Consumer discretionary major registered 9% year-on-year growth in its business for the first quarter ended June 2024. The company had added a total of 61 stores during the reporting period, taking the company's total retail presence to 3,096 stores.Segment wise, jewellery domestic operations rose 8% year-on-year. The company said the week of Akshaya Tritiya witnessed double-digit growth compared to the same period last year.
However, high gold prices and their continued firmness had an impact on consumer demand. Coupled with lesser wedding days, overall sentiments were relatively muted in comparison to Q1 of FY24.
Domestic growth came largely through increase in average selling prices whereas buyer growth was in low single-digits. Tanishq added a new store in Muscat (Oman) during the quarter.
Of the 33 store net additions in the segment in India, 11 were in Tanishq, 19 in Mia and 3 in Zaya.
The Watches and Wearables domestic business for the June quarter rose 14% year-on-year with revenue growth in Analog coming in at a healthy 17% year-on-year. Meanwhile, the wearables witnessed a decline of 6% year-on-year.
“Customer preferences towards premium products was clearly visible with higher growths seen in Titan, Helios channel and Nebula, Edge and Xylys,” said Titan in a filing.
The division added 17 new net stores in the quarter consisting of 5 stores in Titan World, 5 in Helios and 7 in Fastrack respectively.
Titan eye care's domestic business grew 3% year-on-year in the reporting quarter. The division's foray into affordable fashion is said to be aiding volume growth for the category.
In the emerging businesses, Taneira's revenue jumped 4% year-on-year. The brand opened 4 new stores during the quarter, with two of them in Jodhpur and Nashik.
The fragrances and fashion accessories revenue for the first quarter increased 4% year-on-year. Within the segment, fragrances jumped 13% year-on-year and fashion accessories saw a decline of 15% year-on-year.
CaratLane's business for the April-June 2024 period rose 18% year-on-year. The segment added 3 domestic stores in the quarter expanding its network presence to 275 stores pan-India.
On Friday, Titan’s stock closed 1.9% lower at Rs 3,272 on NSE.
Source: Stocks-Markets-Economic Times
