Titan Co. is expecting a 20% year-on-year growth in revenue for the three months till September, driven by its watches and wearables division, as online retailers stock up in anticipation of a robust festive season.
The watches and wearables division grew 32% over the previous year, with analog watches growing 22% and wearables growing 131%, the Tata Group company said in its business update filed with the bourses on Friday.
The mid- and premium watches did particularly well, according to the company. Titan and international brands were key contributors, registering healthy double-digit growth. E-commerce sales more than doubled as the partners stocked up in anticipation of strong third-quarter holiday sales, Titan said. The near 2.5 times growth in the wearables category on a YoY basis propelled the segment's share to the mid-teens in the portfolio.
In the July–September period, the company added 20 watch stores. Of that, 10 were Titan World stores, five were Helios, and five were Fastrack.
The mainstay jewellery segment grew 19% over the previous year, driven by a 20% growth in domestic business and a lower primary outgo for international entities driven by periodic inventory realignment.
Studded activations, new collection launches, robust golden harvest sales, a healthy wedding season, and high-value studded purchases were key enablers that propelled growth in the quarter.
"Building on the positive Q1 momentum, domestic consumer sales (secondary) exhibited strong year-on-year growth and were led by double-digit growths in buyers and ticket sizes," according to the company.
Tanishq expanded its presence in the Gulf Cooperation Council by entering Qatar and adding two new boutiques in Doha during the quarter.
In India, the company added 37 stores in Q2—10 stores of Tanishq, 26 of Mia by Tanishq, and one of Zoya.
The eyecare division witnessed sales growth of 12% YoY. The company said that international brands grew faster as compared to domestic brands. During the quarter, the company said, four new Titan Eye+ and one new Fastrack store were opened in the domestic market.
Other Segments (Q2 FY24, YoY)
The fragrances segment grew 14%, while the fashion accessories segment witnessed a de-growth of 12%. The combined sales grew 4%.
Taneira's sales grew by 64%. The brand opened four new stores during the quarter.
CaratLane sales grew 45%, led by equal growth in studded sales, new collections, gifting campaigns, and ‘old gold' exchange initiatives during the quarter. In the same period, the company added 13 stores, expanding its network presence to 246 stores in 97 cities.
Shares of Titan closed 2.98% higher on Friday to close at Rs 3,311.15 apiece, as compared to a flat benchmark Sensex.
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