Americans may be watching their wallets, but there still seems to be room in the budget for something shiny.
Recent earnings reports from retailers and jewelry companies point to surprising strength in jewelry and watches, spanning everything from fashion jewelry at Kohl’s to four-figure pieces at Signet and luxury jewelry from Tiffany and Bvlgari.
At Kohl’s, jewelry sales increased by the mid-single digits last quarter, outperforming the company overall. Kohl’s had previously gotten rid of its fine-jewelry business, but management said its core customers asked for it back — and since its return, “it’s worked well.”
“Jewelry just seems to be something that continues to trend incredibly well with our customers,” Jill Timm, Kohl’s chief financial officer, told analysts on August 26.
The trend extends up the income ladder. At Bloomingdale’s, the more upscale brand owned by Macy’s, comparable sales jumped 11.3% last quarter, with fine jewelry and other “Big Ticket” items outperforming.
At Signet Jewelers — the company behind Kay, Zales and Jared — sales at price points above $2,000 grew by the high single digits. Sales of fashion jewelry (typically lower price points) declined slightly.
And then there’s the really shiny end of the spectrum. LVMH said Watches & Jewelry was its fastest-growing major division in the first half of the year. Tiffany and Bvlgari each grew in the mid-teens during the second quarter; Tiffany’s HardWear line grew 75%, while Knot grew nearly 50%.
Meanwhile, the watch is making a comeback. Macy’s namesake brand’s watch business is “on fire” thanks in large part to younger shoppers, CEO Tony Spring told analysts on September 10. Movado also said it's seeing some “real momentum” in its watch category as younger consumers are increasingly buying traditional watches.
