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.