Jewellery and watch maker Titan Company fared relatively well in the month of June as compared to April and May, thanks to unlocking phase which is underway since COVID-19 pandemic induced lockdown late March this year.
The Tata Group witnessed return of the hustle-bustle after the resumption of stores activity.
Titan reopened 83% stores across all its businesses as of end of June. The disclosure was made in its quarterly update for the April-June (Q1) period. Apart from jewellery, the company makes watches, eye wear and other accessories.
In Tanishq, Titan’s jewellery division, stores reopened were higher, at 95% in Q1, though revenue in May and June was below 20% in the unit. Titan gets 80% of its total revenue from the jewellery division.
The recovery on a month on month basis is better than what the company envisaged for the segment especially with the wedding season being deferred.
While sales recovery in June, at an overall level, was 70% of last year, it was higher in non-metros versus metros. Also, April had seen a complete loss of sales due to the lockdown.
The sales recovery rate was highest for e-comm and retail channels, while it was the lowest for large format stores. Eyewear segment saw a decline of 85% in May and 65% in June YoY. The eyewear division had to shut 15 stores during the quarter.
Almost all manufacturing operations have commenced operations. However, production levels are low now, given the inventory situation and will be ramped up only gradually when the company sees sales picking up to normal levels.
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