Sales of pre-owned watches, however, grew 80 percent following the company’s rollout of the Rolex Certified Pre-Owned program.
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The company attributed the drop to the ongoing transition at Venetia and planned maintenance at its diamond mines in Botswana.
However, the company’s jewelry brands seemed to hold their own.
The luxury titan pointed to softening luxury sales, especially in the U.S. and Europe.
The company is pulling back on sales amid oversupply in the midstream and slumping diamond jewelry demand.
Macroeconomic pressures like inflation and a decline in the number of people popping the question took a toll on the jeweler.
They were down 42 percent year-over-year and 10 percent month-over-month in August.
The company noted a “challenging environment for consumer discretionary products.”
Mother’s Day and “The Little Mermaid” helped make a difference, though the company’s U.S. sales are still lagging behind last year.
The retailer described early results as “encouraging” and said it will introduce the program in the U.K. in September.
The retailer reported a record-breaking number of orders for the quarter amid strong Mother’s Day sales but average order value declined.
CEO Al Cook attributed the decline to a combination of seasonal slowdown and manufacturers’ wariness about the remainder of 2023.
Production and total sale volumes were both flat from the year prior.
The luxury titan also announced it acquired a 30 percent stake in Italian luxury brand Valentino and named a new CFO.
Despite its strong results, the luxury titan remained cautious about the rest of the year due to economic and geopolitical uncertainty.
The owner of Cartier and Van Cleef & Arpels also said online-only retailers are facing a “globally challenging environment.”
Consumer spending may shift to services as “revenge spending” on post-pandemic travel slows, said the Conference Board.
The numbers indicate a rebound in the market for the rough stone.
CEO Al Cook said macroeconomic challenges are impacting consumer demand, making the industry cautious about the second half of the year.
The jewelry giant noted lower-than-expected Mother’s Day sales and increasing macroeconomic pressures.
The company has plans to revamp the Movado brand and offer less expensive watches this year.
The company confirmed it will be combining the auctions for the fifth and sixth sales cycles into one.
CEO Brian Duffy also detailed a new joint venture partnership with Audemars Piguet.
The company reported record sales, driven by desire for classic lines like Cartier “Panthère” and “Alhambra” from Van Cleef & Arpels.
CEO Beth Gerstein also spoke about the retailer's store count, its resonance with Gen Z shoppers, and more on the company’s Q1 earnings call.