Tiffany & Co.'s worldwide net sales increased 8% to $1.05 billion in the two months of the holiday period ended December 31, 2017 due to growth across regions and product categories, and comparable store sales rose 5%, the jeweler announced in a press release. 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%. The growh was fueled by higher sales of fine jewelry, watches, and a new home and accessories collection. The company notes the strongest growth throughout the holidays occurred in the High, Fine and Solitaire and the Fashion jewelry categories, while there was "fractional growth" in the Engagement Jewelry and Wedding Bands category.
In the U.S. alone, same-store sales rose 6 percent. The strongest performance for Tiffany stemmed from the Asia-Pacific region and Europe, where sales grew by a double-digit percentage. The retailer has been opening new stores overseas, and local customers are beginning to spend more there. Building on the holiday momentum, Tiffany raised its earnings outlook for fiscal 2017. The changes do not yet include any effects from new tax legislation. The results caused management to upgrade its guidance for fiscal 2018. It now expects a “mid-single-digit percentage increase in worldwide sales.” Tiffany said it will spend more in the upcoming fiscal year on technology, marketing, and store presentations to reach growth objectives over the long term. In turn, the company is expecting earnings to be flat to slightly down from fiscal 2017's figure.
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." 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.