Tiffany net sales increased to $1.05 billion!

Tiffany & Co reported that its worldwide net sales increased 8% to $1.05 billion in the two months ended December 31, 2017 due to growth across regions and product categories, and comparable store sales rose 5%. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 6% with comparable store sales up 3%.

 

Results in the holiday period have led management to increase its net earnings guidance for the year ending January 31, 2018. Management is also introducing a preliminary earnings outlook for fiscal 2018.

 

Alessandro Bogliolo , Chief Executive Officer, said, "We were pleased with the improvement in sales during the holiday period across regions and categories, both instore and online. While our major Fashion Jewelry collections continued to perform well, customers were equally excited about our Fine Jewelry, our Watches and our new Home and Accessories collection. Some exceptional High Jewelry creations further contributed to the sales performance.

 

This recent return to growth in worldwide comparable store sales, fueled by a substantial improvement in the Americas and Asia Pacific , is consistent with our commitment to generate solid and sustainable growth in sales, operating margin and earnings that is at least comparable to our industry peers over the long-term."

 

He added, "However, while we are encouraged with the holiday sales results, we believe that the preceding negative comparable store sales trend can only be reversed on a sustainable basis by continuing to evolve our product offerings and customer experience and also by stepping up certain strategic spending in our business, all of which is reflected in our preliminary 2018 plans and earnings outlook.

 

Nonetheless, our holiday period results confirm that the Tiffany & Co brand is strong, and we are excited about our numerous long-term global opportunities to capitalize on that strength."

 

Net sales in the Americas, total sales increased 7% to $516 million and comparable store sales rose 6%. In the Asia-Pacific region , total sales increased 16% to $232 million , due to a 7% increase in comparable store sales, new store openings and an increase in wholesale sales. On a constant-exchange-rate basis, total sales and comparable store sales increased 13% and 4%, respectively.

 

In Japan , total sales increased 1% to $145 million and comparable store sales were unchanged. In Europe , total sales rose 14% to $136 million , reflecting the opening of new stores (some of which management believes had negative effects on existing store sales in those markets), and comparable store sales rose 2%. On a constant-exchange-rate basis, total sales increased 5% and comparable store sales declined 7%.

 

Other total sales declined 10% to $18 million ; a 14% increase in comparable store sales was offset by a decline in wholesale sales of diamonds. At December 31, 2017 , the Company operated 316 stores (125 in the Americas , 87 in Asia-Pacific , 54 in Japan , 46 in Europe , and four in the UAE ), versus 314 stores a year ago (125 in the Americas , 86 in Asia-Pacific , 55 in Japan , 43 in Europe , and five in the UAE ).

 

Sales results across product categories ranged from the strongest growth in the High, Fine and Solitaire and the Fashion jewelry categories, to fractional growth in the Engagement Jewelry and Wedding Bands category.

 

 

 

 

 

 

 

 

 

 

 

  • Tiffany net sales increased to $1.05 billion!