Jewellery retailers’ earnings jump 25–35% in 1Q

 

Corporate retailers continued their aggressive store expansion

 

Recently, Kavita Chacko, Research Head, India-World Gold Council published India's gold market update, Rally and demand realignment! Where she said, Stronger quarter for corporate retail jewellers!

 

Earnings reports from leading jewellery retailers for January-March quarter point to a strong performance, with average revenue growth up 25–35% y/y. This was largely fuelled by wedding related demand, festive buying, and a noticeable consumer shift toward gold – both as an adornment and a store of value.

 

While high gold prices tempered demand at the lower price points, the premium segments remained fairly resilient. Average transaction values reportedly rose by 15% to 20% y/y. Also, there was an uptick in old gold exchanges, which contributed to overall sales volumes. Corporate retailers continued their aggressive store expansion strategy, adding 10 to 30 new outlets during the quarter and reinforcing the growing presence of organised players in the jewellery sector.

These large retailers remain upbeat about the outlook for the April-June quarter. Early indicators of advance bookings for regional festivals such as Akshaya Tritiya – a key period for gold purchases – point to strong consumer sentiment. 

Further underlining this bullish outlook, leading retailers plan to open between 150 and 200 new showrooms over the next 12 months, setting the stage for continued gains in market share and deeper penetration across regions.  

In the row, Kavita, also focussed, gold buyers turn selective! Gold's steep climb and ongoing volatility are keeping many consumers on the sidelines, with demand for jewellery continuing to be limited to need based purchases, particularly for weddings. There has been a noticeable shift in consumer behaviour in response to soaring prices, with more buyers opting to trade in old jewellery for new: anecdotal reports suggest that 40–45% of purchases now involve some form of exchange.

 

While festive buying has continued, it remains modest and localised, often tied to specific regions and communities. At the same time, the investment appeal of gold is gaining prominence. Anecdotal reports suggest that demand for bars and coins has been resilient, even at high price levels.

 

The trend of festival and wedding related purchases is likely to persist, supported by the safe-haven appeal of gold. But this may not offset the drop in discretionary purchases. Amid broader financial market turmoil and uncertainty, gold's role as a store of value is becoming more pronounced, reflecting a shift in consumer behaviour from consumption-driven purchases to wealth preservation.