Tiffany & Co recorded solid growth in the third quarter ended October 31, 2017 on the back of rising demand from its key markets, Asia in particular.
Total sales in the Asia-Pacific region rose 15 percent to US$283 million in the third quarter and 8 percent to US$775 million from January to October mainly due to the sturdy business in mainland China offsetting declines in other markets.
Sales in Japan, meanwhile, reached US$139 million in the third quarter, up 8 percent from a year ago. Its year-to-date sales hit US$407 million, 3 percent higher compared to last year. In the Americas, overall sales of US$421 million in the third quarter were up 1 percent from the prior year while year-to-date sales of US$1.3 billion were almost unchanged. Tiffany attributed the slower business to lacklustre spending by foreign tourists.
Worldwide net sales increased 3 percent to US$976 million, and comparable store sales declined 1 percent, reflecting sales growth in most regions, as well as increased sales in the fashion jewellery and the high, fine and solitaire jewellery categories. Net earnings were up 5 percent to US$100 million.
Alessandro Bogliolo, CEO of Tiffany, commented, “Tiffany is such an inspiring brand with an incredibly rich legacy, traditions of excellence in craftsmanship and design, and leadership in sustainability. I am very excited to be leading our team and enthusiastic about the tremendous opportunities we have to further develop our global business. These latest financial results marginally exceeded our expectations, but I believe that Tiffany has the medium to long-term potential to achieve meaningful comparable store sales growth and drive higher operating margins and earnings growth. Looking forward, we will increasingly capitalise on the strength of the Tiffany & Co brand with stronger organizational focus on innovation in product, digital, communication and the customer experience.”