News about jewelry

After a sharp rise in diamond and jewelry buy-backs from July, PNJ's Q3 2026 net revenue fell 14% to nearly 7,000 billion VND, with gross profit down 62% to 609 billion VND and a 258 billion VND after-tax loss. Cash and deposits at end-September were only about 770 billion VND, including a 700 billion VND personal loan from the Board Chair, while diamonds account for about 52% of inventory and are hard to sell without deep discounts. The company extended buy-back payments to 120 days, but retail revenue in August and September was under half of normal levels. The revised 2026 plan cuts revenue 19% to 39,057 billion VND and projects a 6,271 billion VND loss, mainly due to a provision of over 7,071 billion VND, and proposes a private share placement of up to 550 million shares to raise about 8,000 billion VND.

At PNJ's 2026 extraordinary general meeting, management said the company needs an additional VND 100-150 billion per month to keep operating, with bank debt around VND 3,000 billion and 52% of inventory being hard-to-sell diamonds. Chairwoman Cao Thị Ngọc Dung and her family reduced their stake to fund a VND 700 billion loan to the company, and now hold about 11.4% of shares. Because a 2026 loss of nearly VND 6,300 billion means PNJ does not meet the Securities Law requirements for a rights issue to existing shareholders, it chose a private placement instead. The revised 2026 plan cuts revenue 19% to VND 39,057 billion and swings to a VND 6,271 billion after-tax loss due to a provision of over VND 7,071 billion; excluding it, profit is estimated at about VND 800 billion, while the 2027 scenario projects only about VND 100 billion.

On October 15, the NRF forecast that US holiday retail sales in November and December would rise 4.2% year on year to $1.013 trillion, the first time they would top $1 trillion, after 3.1% growth to $972 billion in 2025, though it gives no separate jewelry projection. A September McKinsey survey of 4,013 consumers found 43% expected to spend less on jewelry over the next three months. Mastercard projects 5.5% growth from November 1 to December 24, excluding gasoline and autos, and notes that over 35% of in-store spending on jewelry, handbags, department stores and cosmetics in the 2025 season occurred in the final week before Christmas. The NRF cites persistent inflation, higher gasoline prices, high interest rates and household debt, and expects 325,000 to 375,000 seasonal hires, versus about 356,000 last year. The article suggests jewelry retailers may have to compete harder for discretionary spending.

Vietcap warns that its forecast for PNJ's 2026–2032 profit (VND 20,357 billion) could fall by 39–54% if the company records 50–100% of a VND 6,250 billion repurchase provision in the second half of 2026. The warning comes as PNJ proposes at an extraordinary shareholders' meeting on October 21 to cut its 2026 profit target from a VND 3,409 billion profit to a VND 6,271 billion loss, mainly due to a VND 7,071 billion provision. In the first eight months, revenue rose 39% to VND 31,404 billion, but profit attributable to parent shareholders fell 54% to VND 668 billion. Vietcap's sensitivity analysis suggests that if the full provision is recorded, book value per share could fall to just VND 12,619 by year-end.