Bluestone Outshines Slowdown with Repeat Customers

Bengaluru-based Bluestone Jewellery demonstrated resilience in the April-June quarter, navigating a slowdown in India's jewellery market. The company's strategy, emphasizing everyday, design-led jewellery, has cultivated a strong base of repeat customers who now contribute approximately 60% of sales. This focus has led to a significant year-on-year revenue increase of 49.6%, reaching ₹736.8 crore, and a net profit of ₹6 crore, a notable turnaround from a loss in the prior year.

Despite challenges like rising gold prices impacting new customer acquisition, Bluestone expanded its retail footprint by adding 12 stores, bringing its total network to 352 across 139 cities. The company is actively working to deepen wallet share among existing customers while rebuilding the pace of new customer acquisition. This approach aligns with a broader market shift towards personal expression-driven jewellery, particularly among women, as noted by research firms.

Bluestone's performance is against a backdrop of industry-wide demand softening, influenced by increased import duties and gold price volatility. However, international gold prices have corrected, potentially improving consumer demand outlook. The company's shares saw a significant surge, hitting the upper circuit on Tuesday following the release of its positive financial results.