Kalyan Jewellers sees 37 per cent revenue growth in Q2 on strong gold demand
Tue Oct 08 2024
Kalyan Jewellers, Kerala-based jewellery retailer, reported double-digit growth in revenue and same-store sales in the September quarter (Q2FY25), driven by strong gold demand across markets. The announcement follows rival Titan’s report of a 25% year-on-year growth in domestic operations for Q2, after a relatively soft June quarter.
On Monday, Kalyan Jewellers stated that it recorded consolidated revenue growth of nearly 37% year-on-year in the September quarter, supported by robust operating momentum.
For its India operations, Kalyan’s revenue grew by 39% year-on-year in Q2, with same-store sales growth of nearly 23%, according to its latest business update.
“The reduction in customs duty on gold imports, announced in the Budget 2024,
resulted in significantly higher footfalls from the last week of July to
August-end, negating the impact of 14 days of shradh (when sales are typically
more muted) during the quarter and extreme volatility in gold prices,” the
retailer said.
West Asia contributed around 13% to Kalyan’s consolidated revenue in Q2, while its digital-first jewellery platform, Candere, saw a revenue growth of 30% compared to last year. The company also opened 12 new Candere showrooms during the quarter.
Kalyan Jewellers launched 15 Kalyan Franchisee-Owned-Company-Operated (FOCO) showrooms in India, “with a strong pipeline of showrooms set to open throughout October in line with our previously communicated guidance”. Meanwhile, Titan added a total of 75 stores (net) to its network, bringing its total retail presence to 3,171 stores at the end of Q2.
Kalyan, on the other hand, plans to launch over 130 showrooms in FY25, of which around 25 Kalyan showrooms will be set up in India, 18 Candere showrooms will come in the country and the first showroom in the US will be launched by Diwali.
In the September quarter, the company launched 26 showrooms across Kalyan and Candere formats, taking the total number of showrooms at the end of the quarter to 303 stores.
Source: https://www.financialexpress.com/