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Strong growth led by surging gold prices

TTAN released its pre-quarterly update for 4QFY25. Here are the key highlights:

TTAN added 72 stores during the quarter, and its total retail presence (including CaratLane) stood at 3,312 stores at the end of 4QFY25.

Jewelry division

* Standalone jewelry sales (excl. bullion) grew 24% YoY in 4QFY25, boosted by the surge in gold prices (vs. our estimates of 18% growth in 4QFY25 and 26% in 3QFY25/19% in 4QFY24).

* Growth was led by both plain gold jewelry (up ~27% YoY) and gold coins (~65% YoY), reflecting high consumer preference for gold.

* Elevated gold prices resulted in sluggish consumer demand at lower price points, leading to buyer growth in single digits. Demand at higher price bands remained stable, resulting in high double-digit growth in ticket sizes.

* Studded jewelry registered low double-digit value (YoY) growth for the quarter. Solitaire segment saw a turnaround and registered growth in buyer and value in this period.

* Overall like-to-like (L2L) sales (secondary) stood at ~15% YoY.

* Tanishq expanded its international network to the new markets of Sharjah in UAE and Atlanta and Seattle in USA.

* Of the 16 new store additions (net) in India, four stores were added in Tanishq and 12 in Mia.

Watches & Wearables division

* The watches and wearable segment’s domestic business grew 20% YoY.

* Titan, Fastrack and Sonata propelled analog watches growth to ~18% YoY.

* All the key retail channels of Helios, Titan World and Fastrack grew in healthy double digits, with Helios channel registering the highest growth (relatively), reflecting consumer preference for premium products.

* The division added 41 new stores in the quarter, comprising 20 stores in Titan World, 10 in Helios, and 11 in Fastrack.

Eyecare division

* The division’s domestic business grew 18% YoY.

* Titan Eyeplus, with its multibrand approach, registered healthy double-digit growth, driven by international brands.

* E-commerce is a new growth driver for the division and is favored by consumers for affordable fashion purchases like sunglasses.

* Titan Eye+ added two new stores in the UAE region, one each in Sharjah and Dubai. However, it closed 11 stores (net) in India during the quarter.

Emerging businesses (Fragrances & Fashion Accessories and Indian Dress Wear)

* Taneira's sales declined 4% YoY.

* 'IRTH' opened four new stores in Hyderabad, Pune, Noida and Mumbai. Taneira closed one store in this period.

* Fragrances business revenue grew ~26% YoY, while Fashion Accessories revenue grew 12% YoY

Caratlane

* The business grew ~22% YoY in 4QFY25, aided by strong growth in the studded portfolio.

* The corresponding buyer growth was in mid-single digits and L2L growth was ~11 % for this period.

* A total of 17 domestic stores (net) were added by Caratlane during the quarter, taking the total India presence to 323 stores.

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