Tiffany Europe sales declined 40%
Tiffany announces net sales
by region for the ended the 1Q!
Tiffany & Co reported its financial results for the three months ended April 30, 2020 (1Q). Worldwide net sales as reported and on a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars were below the prior year primarily as a result of the temporary closures of a substantial number of the Company’s stores around the world due to the Covid-19 pandemic.
In the Americas, total net sales declined 45% to $225 million, which included a comparable sales decline of 45%. On a constant-exchange-rate basis, both total net sales and comparable sales declined 44%. Management attributed the declines to Covid-19 and the resulting closures of substantially all of our stores in the region that began in mid-March and persisted through the end of the first quarter.
In Asia-Pacific, total net sales declined 46% to $174 million and comparable sales declined 45%. On a constant-exchange-rate basis, total sales decreased 44% and comparable sales declined 42% as compared to the prior year. Management attributed the declines to the impact of Covid-19 that caused store closures in Mainland China beginning in February and spread to the rest of the Asia-Pacific markets in March and April. Stores began to re-open in Mainland China at the end of February. As of April 30, 2020, approximately 85% of the Company’s retail stores in this region were fully or partially open.
In Japan, total net sales declined 40% to $86 million and comparable sales declined 41%. On a constant-exchange-rate basis, total sales and comparable sales decreased by 41% and 42%, respectively, as compared to the prior year. Management attributed the decreases to the effects of Covid-19, including the resulting closures of substantially all of the Company’s stores across the region, which primarily began in early April 2020, and the decline in tourist traffic that persisted throughout the quarter. As of April 30, 2020, approximately 5% of the Company’s retail stores in this region were fully or partially open.
In Europe, total net sales declined 40% to $61 million, and comparable sales declined 42%. On a constant-exchange-rate basis, total sales and comparable sales decreased 38% and 40%, respectively. The decline in total net sales reflected the impact of Covid-19 and the resulting store closures that primarily began in mid-March and persisted through the second half of April, when various markets slowly began re-opening. As of April 30, 2020, approximately 15% of the Company’s retail stores in this region were fully or partially open.
Other net sales of $9 million were 65% below the prior year due to the impact of Covid-19 and lower wholesale sales of diamonds.
Tiffany closed two Company-operated stores in the first quarter and relocated two stores. At April 30, 2020, the Company operated 324 stores (123 in the Americas, 90 in Asia-Pacific, 58 in Japan, 48 in Europe, and five in the UAE), versus 321 stores a year ago (124 in the Americas, 89 in Asia-Pacific, 56 in Japan, 47 in Europe, and five in the UAE). As of April 30, 2020, approximately 70% of the Company’s retail stores remained closed worldwide. The Company has continued to gradually reopen a number of retail stores across its markets in accordance with applicable guidelines established by local governments.
Sales results by jewelry category in the first quarter were as follows: Jewelry Collections declined 44%, Engagement Jewelry declined 49% and Designer Jewelry declined 39%, which management attributed to the effects of Covid-19 and the resulting store closures across the markets.
Key: Branded Jewelry, jewellery sales, regional jewelry demand
