Tiffany’s global jewellery sales up 10% YTD to US$3.1 billion
Tiffany & Co. has reported its financial results for the third quarter of 2018 and nine months (year-to-date – YTD) ended October 31, 2018.
The company has attained good sales growth in key markets and the management has attributed the growth in Q3 as-well-as YTD to higher spending by local customers in all regions, partly offset by lower spending attributed to foreign tourists, primarily Chinese, in certain regions.
In Q3, Tiffany’s worldwide net sales increased 4 per cent to US$ 1.0 billion, reflecting growth in all regions and in most product categories; comparable sales rose 2 per cent. Moreover, thye net earnings declined 5 per cent to US$ 95 million, from US$ 100 million a year ago.
In the year-to-date (YTD), the worldwide net sales rose 10 per cent to US$ 3.1 billion, due to increased sales in all regions and product categories; comparable sales rose 7 per cent. Net earnings rose 24 per cent to US$ 382 million, from US$ 308 million a year ago.
Alessandro Bogliolo, Chief Executive Officer, said, “It is worth noting that in the third quarter our sales attributed to local customers continued to grow at a strong rate worldwide and were positive in every region, with particularly strong growth in mainland China. Jewellery volumes also increased in the quarter and year to date. This resulted in mid-single-digit net sales growth in the quarter and even higher growth year-to-date, despite lower-than-expected spending in the third quarter attributed to Chinese tourists in the U.S. and Hong Kong and lower wholesale travel-retail sales in Korea.”
“Our full year outlook is unchanged. We believe we have substantial growth opportunities to pursue as a geographically-diversified luxury brand and are not distracted by external factors, such as the negative effects of a strong U.S. dollar or fluctuations in tourist spending. Our teams are truly excited about the activities planned for the holiday season and are deeply committed to achieving the long-term growth potential of this legendary brand,” he added.
In the Americas, total net sales increased 5 per cent to US $442 million in the third quarter and 7 per cent to US$1.3 billion in the year-to-date; comparable sales increased 5 per cent and 7 per cent, respectively.
In Asia-Pacific, total net sales rose 4 per cent to US$ 294 million in the third quarter, highlighted by strong sales growth in mainland China, along with mixed results elsewhere which included a decline in wholesale travel-retail sales in Korea. In the year-to-date, total net sales rose 19 per cent to US$ 923 million.
In Japan, total net sales rose 2 per cent to US$ 142 million in the third quarter and 10 per cent to US$ 447 million in the year-to-date; comparable sales rose 1 er cent and 8 per cent, respectively.
In Europe, total net sales of US$ 114 million in the third quarter and US$ 343 million in the year-to-date were 3 per cent and 6 per cent, respectively, above the prior year. Other net sales of US$ 20 million in the third quarter and US$ 66 million in the year-to-date were below the prior year by 7 per cent and 17 per cent, respectively, primarily reflecting reductions in wholesale sales of diamonds.
Tiffany has opened nine Company-operated stores in the year-to-date and closed three. At October 31, 2018, the
At present, Tiffany operates 321 stores (124 in the Americas, 89 in Asia-Pacific, 55 in Japan, 48 in Europe, and five in the UAE), versus 315 stores a year ago (125 in the Americas, 86 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the UAE).
Sales results by jewellery category in the third quarter and year-to-date were as follows: jewellery collections increased 8 per cent and 15 per cent, respectively, engagement jewellery increased 2 per cent and 7per cent, respectively and designer jewellery sales declined 8 per cent and rose 3 per cent, respectively.