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3 reasons to be optimistic about Q4
Fine jewelry and watch sales increased 4 percent year-over-year in July and overall economic indicators are positive heading into the fourth quarter.
New York--U.S. Commerce Department data shows that fine jewelry and watch sales increased 4 percent year-over-year in July, with overall economic indicators pointing up as the industry heads into the all-important fourth quarter.
Total U.S. fine jewelry and watch sales totaled $5.5 billion in July, with sales for multi-line merchants (Walmart, Costco, etc.) increasing 4 percent and specialty jewelers’ sales up a “reasonable” 3 percent to $2.2 billion.
In his latest sales update, industry analyst Ken Gassman said that the specialty jewelers included in his sample continue to report that they are selling fewer but more expensive items. Diamond sales, including platinum settings, are growing while sales of charms are slowing. Fashion jewelry sales remain solid.
As expected, the Department of Commerce revised its fine jewelry and watch sales figures for May and June and the revised figures show a smoother, more positive upward trend.
Though total jewelry industry sales are up less than 1 percent through July, and specialty jewelers actually have seen sales decline 2 percent, Gassman wrote that he is “cautiously optimistic” about the fourth quarter because of a few indicators:
-- Consumers have “loosened their purse strings” and the mood of the U.S. shopper is more positive than it has been in years;
-- Jewelers have enough, and the right mix of, inventory; and
-- Most economic data is positive.
Gassman also released his first forecast for 2016, and is predicting jewelry sales will increase 2 to 3 percent over 2015.
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