RAPAPORT. Most US jewelers have recorded sales growth since stores reopened, supported by a shift toward e-commerce and strong bridal demand, according to a recent survey.
One-third of retailers said post-lockdown sales had been slightly higher than a year earlier, while a further 21% reported a “significant surge,” the poll found. Some 27% experienced lower sales, with 19% saying figures were roughly flat year on year.
“While this may reflect ‘pent-up’ demand when stores reopened, it is a good sign that some stores are actually able to increase sales in a highly volatile and uncertain environment,” according to the survey, which jewelry insurer BriteCo carried out in October and November. It released the results this week as a report entitled “Jewelers Going Digital,” which it produced in cooperation with trading platform Polygon and other industry players.
RAPAPORT. De Beers’ rough-diamond sales soared to $650 million in January, its highest for any month since 2018, as manufacturers replenished inventory following the holiday season.
The total was 18% more than the $551 million the miner garnered a year earlier, and 44% above the $452 million it reported in December, De Beers said Wednesday. This was despite the company implementing a sharp increase in rough prices.
“With the midstream starting the year with low levels of rough and polished inventories, and following strong sales of diamond jewelry over the key holiday season in the US, we saw good demand for rough diamonds at the first cycle of the year as midstream customers sought to restock and to fill orders from retail businesses,” said De Beers CEO Bruce Cleaver. “Sales of rough diamonds are also being supported by expected demand ahead of Chinese New Year and Valentine’s Day.”
RAPAPORT. Gem Diamonds emerged from 2020 as one of the few miners to record revenue growth, benefiting from a sharp recovery in prices and sales during the second half.
Sales rose 4% to $189.2 million for the year, the company reported Tuesday in a trading update. The average price jumped 17% to $1,908 per carat, outweighing an 11% decline in sales volume to 99,172 carats.
Gem Diamonds had fewer goods available to sell due to a pause in activity at its high-value Letšeng mine in Lesotho during the country’s lockdown in the second quarter. Production for the full year fell 12% to 100,780 carats.
Rough prices compensated for that, reaching higher levels on a like-for-like basis in the second half of the year than before the Covid-19 pandemic. This reflected an improvement in market conditions, the company pointed out.
RAPAPORT. Kendra Scott has left her position as CEO of her namesake jewelry brand after nearly two decades, and will instead focus on the design and consumer elements of the business.
Scott will continue as executive chairwoman, majority owner, and leader of design, customer experience and philanthropy, the company said Monday. Tom Nolan, president of the company, will succeed her as head of the business.
“Over the last seven years, Tom has been an incredible thought partner to me and a wonderful steward of the brand,” said Scott. “During this extraordinary time of retail transformation, there has been no better person to partner with me on building the brand and the business. Tom is an experienced executive with a relentless focus on the customer, operational rigor, and strong expertise in digital transformation.”
RAPAPORT. The decline in Hong Kong retail sales deepened in December as the resurgence of Covid-19 cases and the continued ban on tourism weighed on the market.
Retail sales of jewelry, watches, clocks and valuable gifts plummeted 41% to HKD 3.09 billion ($399 million) for the month, according to data Hong Kong’s Census and Statistics Department released Tuesday. Sales across all retail categories slid 13% to HKD 31.38 billion ($4.05 billion).
The drop comes after the market for hard-luxury goods had showed signs of recovery the previous month, with November’s 16% decline proving the gentlest for a year and a half.
Sales of jewelry, watches and other luxury gifts slipped 54% year on year to HKD 30.47 billion ($3.93 billion) in 2020, while annual sales in all retail categories plunged 24% to HKD 326.46 billion ($42.11 billion).