Tiffany & Co. announced on Thursday Dec. 26 that its overall global sales during the holiday shopping season (from November 1 through Christmas Eve) rose about 1% to 3% compared with the same period last year, with the largest contribution coming from China, Europe and a recovery in the Americas. Mainland China drove the business during the holiday period, with Tiffany seeing a double-digit sales increase there, offset by declines in Hong Kong.
Overall, sales in Tiffany’s Asia-Pacific region, which includes greater China, rose 7% to 9% after accounting for currency movements. “We continued to see the Chinese Mainland drive our overall sales growth with a strong double-digit increase, offset by the persisting declines in the Hong Kong market and, to a lesser degree, Japan,” Tiffany CEO Alessandro Bogliolo said in a statement. In the Americas, Tiffany expects net sales growth of 2% to 4%. “We are happy to see sales growth in the Americas, a momentum shift in the region,” said Bogliolo. Meanwhile, Tiffany reported an impressive sales gain of 3% to 5% for the holiday period in Europe.
"We completed the enlargement of our flagship store in Shanghai, now the largest Tiffany store in Asia, in a prominent street-facing location within the Hong Kong Plaza mall. At this location, we also just celebrated the opening of the first Tiffany Blue Box Café on the Chinese Mainland. Our London flagship store on Old Bond Street was renovated. Additionally, we opened our third store in Kyoto, Japan and our newest one in the U.S., at Hudson Yards, our fifth store in New York City," he added. “Our iconic flagship store on Fifth Avenue in New York City has remained open throughout the 2019 interim holiday period. The flagship store will close in mid-January 2020, at which time we will begin its complete renovation and temporarily move our operations to the ‘Tiffany Flagship Next Door’ at 6 East 57th Street."
Last month, Louis Vuitton owner French luxury group LVMH agreed to buy the the New York luxury jeweler for $16.2 billion in a deal that could help boost its US business. In the third quarter to end October, Tiffany's net earnings dropped to $78.4 million, or 65 cents per share, versus US$94.9 million, or 77 cents per share in the same period, a year ago.