The jewellery retailer reported a 5 per cent rise in sales to US$960 million (AU$1.1 billion) and a 4 per cent increase in same-store sales for the three months ended 31 October 2014.
Tiffany’s latest financial statement indicated that the fashion jewellery sector – said to primarily include jewellery without gemstones – had achieved the largest sales increase globally compared with other categories like bridal or statement.
In addition, during the company’s earnings conference call, vice president of investor relations, Mark Aaron, said, “For the T collection, as well as our successful Atlas collection launched over the past year, it’s worth noting that gold jewellery is performing especially well.”
Conversely, it was reported that the “healthy” demand in most categories had been offset by “continued unit decline” in silver jewellery.
Modest results in Asia-Pacific
Total sales in the Asia-Pacific region increased 2 per cent to US$243 million (AU$287.9 m) while same-store sales declined 3 per cent. However, Aaron pointed out that the region had had a “difficult comparison to a 22 per cent [same] store sales increase last year”.
“At that time [the sales increase] had been driven by broad-based growth across the region, including some statement jewellery sales,” he said.
Aaron attributed the 2 per cent increase to a rise in engagement jewellery and wedding bands sales, as well as to strong demand in the fashion jewellery category. He also mentioned that the company recently opened a new store in Adelaide, taking the total store count in Australia to seven.
Other regions
Tiffany’s global sales increase was led by the Americas where total sales were up 10 per cent to US$459 million (AU$544 m) and same-store sales rose 11 per cent.
Europe’s overall and same-store sales also increased 9 per cent and 2 per cent, respectively, reporting a total sales result of US$114 million (AU$135 m).
Japan’s total sales, meanwhile, declined 12 per cent to US$113 million (AU$134 m) with comparable store sales also falling 6 per cent.
Collectively, sales in other regions increased 28 per cent to US$30 million (AU$35.5 m) in the third quarter, reflecting a same-store sales increase of 35 per cent.
Commenting on the results, Tiffany chairman and CEO Michael Kowalski said, “We were pleased with overall sales performance, especially in light of economic and geopolitical challenges around the world. We continue to pursue exciting opportunities in marketing, merchandising and store expansion to support longer-term growth, and are especially encouraged with initial results from the recent launch of our Tiffany T jewellery collection.”
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