Weak Gold Demand Hits Titan's 1Q

RAPAPORT... Titan Company reported lower-than-expected jewelry sales inthe first fiscal quarter due to a decline in consumer demand for gold. "Weakness in the consumer sentiment has had an impact on oursales, also leading to recording of sales below our internal targets," theretailer said Wednesday, referring to the three months ending June 30. While purchases during the Akshaya Tritiya festival - animportant season for gold buying - remained somewhat strong, the remainder ofthe quarter was significantly weaker than the same period the previous year,the company noted. The quarter saw lower demand for gold as an investment aswell as for jewelry, Titan added. Jewelry sales also suffered on a year-on-year basis because growthwas especially strong in the same quarter a year earlier. The company broughtforward about $36.3 million (INR 2.5 billion) worth of sales to the firstfiscal quarter last year in anticipation of the new goods and services tax(GST), which went into effect last July. Meanwhile, Titan's watch division had a "great quarter," boostedby new designs and marketing campaigns that revived consumer interest andbrought in younger customers, the company said. Theretailer added 10 new stores for its Tanishq jewelry brand during the quarter.