Jewelry Among Top Performers at Major Retailers

RAPAPORT... Two of the top US department stores noted strong jewelrysales in the third fiscal quarter, even as their overall sales disappointed. "In terms of specific results, our top-performingmerchandise categories in the quarter included fine jewelry, footwear, men'sand women's apparel," J.C. Penney chief financial officer Bill Wafford saidlast week on an analyst call transcribed by SeekingAlpha. "Our fine-jewelry business once again delivered solid sales results,"he reported. Comparative-store sales for the division increased, with strengthin categories such as modern bride, diamonds, gems and silver, Wafford added. The retailer will also create a "destination" business forjewelry, noting customers want easier shopping experiences and a fun place toshare with others. "We have created differentiating elements that will deliveron these imperatives," J.C. Penney CEO Jill Soltau said. "A destination tocomplete the look, the all-you zone, showcasing fashion jewelry and accessories." Macy's, which also incorporates jewelry into a "destination"business, saw solid sales in the category as well. "We had strong performance in mattresses, fine jewelry,fragrances, dresses, men's active and men's tailored," Macy's chief financialofficer Paula Price said on the company's analystcall. The company is looking to its destination categories, whichaccount for 40% of the retailer's total sales, to help drive holiday purchases,Macy's president Hal Lawton noted on the call. "I think what I'd just say about our destination businessesis they're in great shape for the holiday," he explained. "I'd highlight thingslike our gifts under strategy and beauty, our holiday party-dress lineup, [and]our elevated jewelry assortment." J. C. Penney's revenue fell 10% to $2.38 billion in thethird quarter, which ended November 2, while sales at Macy's dropped 4.3% to$5.17 billion for the same period. Image: Macy's flagship Manhattan store. (Shutterstock)