In an impressive second-quarter performance, Titan Co. is set to achieve a remarkable 20% year-on-year increase in revenue for the three months ending in September. This surge in growth is primarily attributed to the robust performance of its watches and wearables division, driven by a strategic buildup by online retailers in anticipation of the upcoming festive season.
According to the company’s business update filed with the stock exchanges, the watches and wearables division recorded an astounding 32% growth compared to the previous year. Analog watches registered a solid 22% growth, while wearables witnessed an astonishing surge of 131%.
The mid- and premium-tier watches within the portfolio demonstrated exceptional performance, with Titan and international brands contributing significantly by achieving healthy double-digit growth figures. E-commerce sales soared by over 100%, reflecting the optimistic outlook of partners who are gearing up for a strong holiday sales season in the third quarter. Notably, the wearables category witnessed an extraordinary year-on-year growth of almost 2.5 times, propelling its share in the portfolio to the mid-teens.
During the July-September period, Titan expanded its retail presence by adding 20 new watch stores. Among these, 10 were Titan World stores, five were Helios outlets, and five were Fastrack stores.
In addition to its watches and wearables division, the core jewelry segment also displayed significant growth, recording a 19% increase compared to the previous year. This was driven by a remarkable 20% growth in the domestic market, coupled with reduced primary expenses for international entities, thanks to periodic inventory adjustments.
Several factors contributed to this quarter’s growth, including studded activations, new collection launches, robust sales during the golden harvest season, a healthy wedding season, and high-value studded purchases. The company noted that domestic consumer sales exhibited strong year-on-year growth in Q2, led by both an increase in buyers and higher average ticket sizes.
Notably, Tanishq expanded its presence by entering the Gulf Cooperation Council, opening two boutiques in Doha during the quarter. In India, Titan added 37 stores, including 10 Tanishq stores, 26 Mia by Tanishq outlets, and one Zoya store.
The eyecare division reported a solid 12% year-on-year sales growth, with international brands outpacing domestic brands in growth. The quarter also saw the opening of four new Titan Eye stores and one new Fastrack store in the domestic market.
While the fragrances segment grew by 14%, fashion accessories experienced a 12% decline, resulting in an overall 4% growth in combined sales.
Taneira, known for its ethnic wear, recorded an impressive 64% growth in sales during the quarter and expanded by opening four new stores.
CaratLane, the brand specializing in jewelry, reported a substantial 45% growth in sales, driven by increased studded sales, new collections, gifting campaigns, and “old gold” exchange initiatives. The company added 13 stores during the same period, expanding its network presence to 246 stores in 97 cities.
Shares of Titan closed 2.98% higher on Friday, reaching Rs 3,311.15 apiece, outperforming the benchmark Sensex, which remained flat. Titan’s impressive Q2 results underscore its position as a leader in the watch, jewelry, and eyecare industries, setting a positive trajectory for future growth.
