Titan Sales Drop as Gold Price Surges

RAPAPORT... Jewelry sales declined at Indian retailer TitanCompany after a hike in gold prices dampened consumer appetite. Revenue for the category dropped 2% year onyear in the second fiscal quarter ending September 30, Titan reported in arecent trading update. Salesslumped in July, before picking up in August and September as the companyintroduced promotions to attract customers. "The divisionwitnessed a sharp fall in sales after a sudden surge in gold prices dented consumerdemand from mid-June," the jeweler said. "The weakness continued during Julytoo, and resulted in considerable degrowth in sales during the month." During the quarter, Titan's Tanishq brand launched Ahalya, a collection of high-valuediamond necklaces. It also opened a net 21 Tanishq stores, adding 67,000 squarefeet of retail space. Meanwhile, C K Venkataraman succeeded Bhaskar Bhat as Titan's managingdirector on October 1. Ajoy Chawla has taken on Venkataraman's previous role asCEO of the jewelry division, the retailer added. Watch sales rose 7% for the quarter, the company added. Titan is dueto publish more detailed results at a later date. Image: A pair of earrings by Titan brand Tanishq. (Titan Company)