Tiffany & Co posts lift in holiday sales
Tiffany & Co reported a six per cent increase in worldwide net sales with same store sales seeing an increase of three per cent in the two months ending December 31, 2017 on the back of growth across regions and product categories. Tiffany had posted a decline of one per cent in the same corresponding period the previous year.
Alessandro Bogliolo, Tiffany & Co CEO, however, cautioned that the retailer still needed to invest more in its business to sustain the boost from the holiday season.
“We were pleased with the improvement in sales during the holiday period across regions and categories, both instore and online,” Bogliolo said.
“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.”
In the Americas, total sales increased seven per cent to $516 million and comparable store sales rose 6 per cent. Management noted varying degrees of growth across most of the US, Canada and Latin America with higher spending attributed primarily to local customers.
In the Asia-Pacific region, total sales increased 16 per cent to $232 million, due to a seven per cent increase in comparable store sales, new store openings and an increase in wholesale sales. Management attributed retail sales growth primarily to higher spending by local customers, and particularly noted growth in mainland China, Hong Kong and Korea. On a constant-exchange-rate basis, total sales and comparable store sales increased 13 per cent and four per cent, respectively.
In Japan, total sales increased one per cent to $145 million and comparable store sales were unchanged.
In Europe, total sales rose 14 per cent to $136 million, reflecting the opening of new stores (some of which management believes had negative effects on existing store sales in those markets), and comparable store sales rose two per cent. Management noted varying performance across the region with overall sales growth attributed to higher local customer spending. On a constant-exchange-rate basis, total sales increased five per cent and comparable store sales declined seven per cent.
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