Tiffany's Global Sales Up 3% in Q3 As China Sees Growth, Comp Sales -1%

Jewelry
30/11/2017 10:57

Tiffany & Co. saw its worldwide net sales increase 3% to $976 million in the third quarter for the three months ended October 31, 2017, while comparable store sales declined 1%. On a constant-exchange-rate basis, their comps held steady. Their net earnings increased 5% to $100 million from $95 million. The uptick in net sales was driven by a 15% rise in the Asia-Pacific region, to $283 million, as strong growth in mainland China contrasted with declines in most other countries, which the jeweler attributed largely to lower Chinese tourist spending. The company reports increased sales in the fashion jewelry and the high, fine & solitaire jewelry categories. In Europe, total sales increased 5% in the third quarter to $110 million.

Sales in the Americas rose slightly in all categories except engagement jewelry. Total sales of $421 million in the third quarter were 1% higher than the prior year and total sales of $1.3 billion in the year-to-date were approximately equal to the prior year. Comparable store sales increased 1% in the third quarter and declined 1% year-to-date. They attributed the overall sales softness to lower spending by foreign tourists. Alessandro Bogliolo, Chief Executive Officer, who joined Tiffany in October, said, These latest financial results marginally exceeded our expectations, but I believe that Tiffany has the medium to long-term potential to achieve meaningful comparable store sales growth and drive higher operating margins and earnings growth. Looking forward, we will increasingly capitalize on the strength of the TIFFANY & CO. brand with a stronger organizational focus on innovation in product, digital, communication and the customer experience." On a conference call following the release of its financial results, he stated, “Some of our competitors have posted stronger sales growth than us, which, I can assure you, will not be acceptable in the long term.” He can take solace from the results of a new survey by MVI Marketing, which found that Tiffany is far and away the preferred jewelry brand among affluent millennials.