Titan posted its business update for the quarter ended June on Friday evening.

What Happened: The company expanded its retail network with the addition of 61 new stores during the quarter, bringing the total to 3,096 stores. The jewellery segment witnessed a 9% growth with 34 new stores, while the Watches & Wearables segment saw a 15% growth with 17 new stores.

Despite the high gold prices affecting consumer demand, the company experienced double-digit growth in Tanishq secondary sales during the auspicious week of Akshaya Tritiya.

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The eye care segment’s domestic business grew around 3% YoY, with Titan Eye+ adding 3 new stores in India during the quarter. In the Emerging Businesses, Taneira’s revenue grew approximately 4% YoY, with the brand opening 4 new stores during the quarter. The company’s Fragrances & Fashion Accessories Revenue also grew approximately 4% YoY, with Fragrances growing by around 13% YoY. Caratlane’s business grew approximately 18% YoY, adding 3 new domestic stores in the quarter.

Earlier today, Kotak Institutional Equities downgraded Titan’s stock from “add” to “reduce”, cutting the target price to ₹3,075 from ₹3,600. The research firm cited margin headwinds on three fronts: the sharp increase in gold prices, increased competition from Kalyan and Malabar, and the impact of lab-grown diamonds on studded mix and profitability.

Price Action: Titan’s share price was down 2% to close at ₹3,269.35 on Friday.

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