Tiffany & Co. Sales Rise In Q3, First Growth in Two Years

Jewelry
30/11/2016 14:45

Tiffany & Co.’s shares rose by more than 6% following the announcement of their third quarter update, reporting the jeweler’s first sales growth in over 2 years. Net sales worldwide advanced by 1% to $949 million, and comparable store sales declined 2%. These figures reflect the mixed results across geographic regions and the various product categories. Frederic Cumenal, Tiffany’s chief executive officer, said “We are encouraged by early signs of improvement in sales, but we clearly need more positive data over time before this can be considered an inflection point.”

Tiffany’s decided not to raise its guidance in part due to the protests against U.S. President-Elect Donald Trump, in front of Trump Tower which is located next to Tiffany’s Manhattan store. The demonstrations caused a significant decrease in foot traffic since the elections on November 8th. In the Americas, total sales reached $417 million in the third quarter, 2% below the previous year, due to lower spending by U.S. customers, although revenue did increase from foreign tourists, namely those from Japan driven by the appreciation of the yen against the U.S. dollar.

Asia-Pacific sales increased by 4% to $247 million, in the third quarter, as China recorded a “double-digit” jump and the sales decline in Hong Kong slowed down significantly. Japan’s sales jumped by 13% to $150 million due to the currency appreciation of the yen. Furthermore, there was a strengthening in sales from the UK, however Europe remained slow. For the full fiscal year, the company maintains its forecast that worldwide net sales will continue to decline by a low single-digit percentage from the previous year and earnings per diluted share to decline by a mid-single-digit percentage from 2015's adjusted earnings.