Shares of jewelry retailers fell after they reported weak sales for the holiday period, the latest signal that consumers are reining in spending amid a difficult economic environment.
Finlay Enterprises Inc., which operates Bailey Banks & Biddle, Carlyle and Congress specialty jewelry stores, said December same-store sales fell 5.9 percent in the two-month November and December period, and cut its fourth-quarter guidance.
Same-store sales, or sales at stores open at least a year, is an important retail performance indicator because it measures sales at existing stores rather than newly opened ones.
Shares fell 2 cents to $1.23, but earlier set a 52-week low of $1.07. They have traded in a 52-week range of $1.18 to $9.91.
Meanwhile, Zale Corp. lowered its fiscal second-quarter guidance after it reported same-store sales fell 9 percent in November and December.
Shares fell 75 cents, or 5.1 percent, to $14.03 during midday trading. The stock has traded between $13.11 and $30.15 over the past year.
Signet Group PLC, which operates Kay Jewelers, said same-store sales fell 6.8 percent in November and December.
Shares fell 4 cents to $11.
Consumers are being pressured to curb discretionary spending due to a weak housing sector, credit problems and high food and gas prices.
Jewelry is generally considered a luxury item, however, and the retailers that reported on Thursday are more mid-tier than others such as Tiffany & Co. Tiffany reports same-store sales on Friday, and may prove less vulnerable to the economic environment.
Source: forbes
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