METAL-INTENSIVE JEWELRY

February 1998

Precious Metals: Data & Statistics

METAL-INTENSIVE JEWELRY

 

Metal-Intensive Jewelry Yields Healthy Gross Margin

 

 Sales Growth

 Gross Margin

 Inventory Turnover

 Distribution of Sales

 Gross Margin Return on Inventory

Independent Jewelers (high-end)

 Karat Gold Jewelry

 0.4%

 50.0%

 0.9 X

 13.0%

 91.4%

 Fashion Jewelry

 16.0%

 55.2%

 1.1 X

 1.4%

 115.3%

           

Independent Jewelers (mid-range)

 Karat Gold Jewelry

  0.4%

 50.0%

 0.7 X

 13.8%

 87.6%

 Fashion Jewelry

 1.5%

 52.7%

 1.1 X

 2.1%

 129.3%

           

Designer, Artist, Custom Jewelers

Karat Gold Jewelry

 49.5%

 54.3%

 1.2 X

 8.9%

 118.8%

Fashion Jewelry

 N/A

 N/A

 N/A

 N/A

 N/A

           

Jewelry Chains

 Karat Gold Jewelry

 3.0%

 58.1%

 1.7 X

 15.8%

 58.1%

 Fashion Jewelry

 7.8%

 53.8%

 0.9 X

 1.6%

 53.8%

 Source: Jewelers of America "Cost of Doing Business Survey." Note: Table shows median figures.

 

Two measures of profitability shine a glowing light on metal-intensive jewelry, according to the newly released Jewelers of America "1997 Cost of Doing Business Survey."

Karat gold jewelry and fashion jewelry (including bridge jewelry) provided fairly even gross margins for all four categories of jewelers surveyed in the study. But one category - designer/artist/custom - pulled away from the pack in terms of sales growth and gross margin return on inventory (a measure of profitability that indicates whether a business earns an adequate gross margin compared with the inventory investment required to generate those margin dollars).

JA's "Cost of Doing Business Survey" features key performance measures in three areas: profitability, productivity and financial management. It provides the most complete and up-to-date comparative financial information available to retail jewelers. It is designed to help jewelers pinpoint strengths and weaknesses so they can improve their competitiveness.

JA cautions that any deviation between your figures and those in this table is not necessarily good or bad, though it may indicate more analysis is needed. Information in the study should be used as a guideline instead of an absolute standard because companies differ on their merchandising mix, location, size and other factors.

For more information on the study, call Jewelers of America at (212) 768-8777.






Copyright © 1998 by Bond Communications.


 

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