RETAILING Jewelers expect sales to put a sparkle in their eyes

Most of jewelers' earnings come from holiday sales.
DALLAS MORNING NEWS
The holiday season is a time of extremes -- extreme spending, extreme busyness, extreme anxiety about buying the perfect gift.
And in retailing, one of the greatest extremes is in the jewelry industry.
The biggest chunk of sales and the vast majority of profits roll in during November and December.
Those two months account for about a third of jewelry retailers' annual revenue -- and, for many jewelers, most of the earnings, according to industry experts.
"You wonder why they don't just close their doors the rest of the year," industry analyst Ken Gassman said with a touch of sarcasm.
Sales gain expected
November and December are expected to bring a 7 percent sales gain at jewelry stores over the same period last year, which pulled in a 6 percent increase over 2001, said Gassman, an analyst with Rapaport Group.
And bigger numbers are expected at luxury jewelers, he said.
"That's the Tiffanys and Harry Winstons -- up 10 percent or more."
Clients of those high-end jewelers have seen their stock portfolios rise this year as their home values continue to escalate, and they're feeling wealthier, Gassman said.
Bachendorf's, an upscale Dallas jeweler, is "tending up" this season, said vice president Steve Bock.
"Wealthy people are feeling good about spending a little more money," he said. "No matter how much they've got invested, people feel better about spending when the market is moving in the right direction."
Ohio-based Sterling Jewelers Inc., which owns the Kay and Jared chains, says the year's final two months are responsible for 34 percent of the company's total sales. "It's very important," said spokesman David Bouffard.
Fine jewelry
The category known as fine jewelry -- good stones, better-quality gold and the like -- totaled nearly $42 billion in sales last year in the United States. Toss in costume jewelry and miscellaneous items, and the total was nearly $52 billion.
The jewelry sector rakes in roughly 32 percent of its sales during the holiday months while other retail segments are notably lower, according to U.S. Department of Commerce figures.
Women's apparel and consumer electronics, for instance, both come in at 22 percent.
Harry Winston, the jewelry retailer known for draping Oscar nominees in diamonds, opened a salon in Dallas earlier this month. The timing was not coincidental.
"Are we opening prior to the holidays for a purpose? Sure," said Carol Brodie, spokeswoman for the New York City company.
The vibes this year seem good, some say.
"All the good news helps," said Beryl Raff, J.C. Penney Co.'s senior vice president and general merchandise manager for fine jewelry. "Last year, all you heard on the news was that the world was coming to an end. There was the economy, the war, a lot of unnerving things," she said.