As we previously reported, just before Thanksgiving (and Black Friday), the Enough Project published their report on jewelry companies and ratings relative to conflict minerals programs. This is generally the same rating framework Enough used for electronics companies, the most recent one completed in 2012.
And just we did for the 2012 electronics ratings, we are developing a report on potential correlations between the Enough ratings of the jewelers and consumer buying behavior. Like Enough, we also are using the same general methodology as we did for our original report. Our two-year baseline financial data collection is complete and we are now extracting key data, although this is not without its challenges. True to our original methodology, we are attempting to isolate both the relevant product revenues and time periods. Some of the jewelers do not publicly release financials, others do not report on a product, segment or category basis to identify jewelry-specific sales, and some of the companies have reporting periods that ended before the Enough ratings were published.
But there are points of clarity too. For instance, Tiffany is a jeweler that publicly reports its financials, including specifically for the holiday time period that Enough targeted. Although Tiffany received the second-best rating by Enough, the company’s worldwide and U.S. sales declined from the same time period last year. We can’t draw a specific conclusion from this data, but in the end that may be exactly the point – just as it was in our analysis of the electronics companies in 2012. This isn’t to discourage anyone from pursuing conflict-free status or activities, rather we hope these insights will allow companies to avoid developing expectations or metrics that may not be appropriate or measurable.
If you are interested in obtaining a copy of the report when it is published, please contact us.