Global sales increased 3 per cent to US$976 million (AU$1.3 billion) in the three months ended 31 October 2017 compared to the prior year.
Same-store revenue declined 1 per cent; however, earnings increased 5 per cent to US$100 million (AU$131 m).
According to the company’s financial statement, the results reflected a rise in sales throughout most regions, as well as increased revenue in the fashion-jewellery and the high, fine and solitaire jewellery categories.
From a regional perspective, sales in Asia-Pacific rose 15 per cent, while the Americas reported a 1 per cent increase, Japan achieved an 8 per cent rise and Europe recorded a 5 per cent increase. Other sales declined 26 per cent compared to the previous year.
Tiffany & Co chief executive officer Alessandro Bogliolo said the latest results “marginally exceeded” expectations.
"[However], I believe that Tiffany has the medium to long-term potential to achieve meaningful comparable [same] store sales growth and drive higher operating margins and earnings growth,” Bogliolo added.
“Looking forward, we will increasingly capitalise on the strength of the Tiffany & Co brand with stronger organisational focus on innovation in product, digital, communication and the customer experience."
Boosting sales
The company has recently introduced a range of strategies to attract customers, including two temporary ‘pop-up’ stores in New York and a renovated fourth floor at its Fifth Avenue flagship store that houses the new home and accessories collection and The Blue Box Café.
The cafe, which opened 10 November, uses the iconic Tiffany Blue hue throughout the interior and operates during store hours, offering a set breakfast and lunch menu.
Tiffany & Co chief artistic officer Reed Krakoff described the café and redesign of the home and accessories floor as reflecting a “modern luxury experience”.
“The space is experimental and experiential – a window into the new Tiffany,” Krakoff said.
The cafe has generated significant media attention and the company’s director of investor relations, Mark Aaron, stated in a conference call that, based on the long queues, it was “fast becoming a New York tradition”.
These initiatives are seemingly an attempt to improve sales for the Christmas trading period following disappointing results in the past few years.
As previously reported by Jeweller, overall revenue declined 3 per cent for the full year ended 31 January 2017, while same-store sales fell 5 per cent.
Same-store sales decreased 2 per cent for the two-month “holiday period” ended 31 December 2016.
According to the company’s financial statement at the time, these results were “somewhat lower” than expected.
Revenue for the full year ended 31 January 2016 fell 3 per cent, with same-store sales said to be equal to the prior year. Revenue for the two-month period ended 31 December 2015 fell 6 per cent.
The company’s latest financial report stated that management expected global sales for the fiscal 2017 year to increase by a “low-single-digit percentage”.
As at 31 October, Tiffany & Co opened seven stores in the year-to-date and closed five. It operated 86 stores in Asia-Pacific, 125 in the Americas, 54 in Japan, 46 in Europe and four in the UAE.
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