Duraflex Group Australia
advertisement
Duraflex Group Australia
advertisement
Duraflex Group Australia
advertisement
Goto your account
Search Stories by: 
and/or
 

News

Articles from DIAMOND JEWELLERY (975 Articles), FASHION JEWELLERY (291 Articles), RINGS - ENGAGEMENT (220 Articles)










Tiffany & Co's third quarter sales declined in most regions due to the strong US dollar
Tiffany & Co's third quarter sales declined in most regions due to the strong US dollar

Tiffany & Co jewellery sales tumble

Tiffany & Co has revised its earnings guidance for 2015 to reflect a “cautious outlook” after suffering the effects of a strong US dollar in the third quarter. 

The international jewellery brand’s global net earnings for the three months ended 31 October decreased 8 per cent to US$91 million (AU$126.6 m) compared to the previous year.

This decline was largely attributed to the negative effects of the strong US dollar, although it was noted that lower sales and higher expenses also played a role.

As a result, Tiffany & Co revised its projected net earnings for the year ending 31 January 2016 to be 5–10 per cent below the previous year’s US$4.20 (AU$5.84) per diluted share.

This followed another revision earlier this year. The company adjusted its net earnings expectations to a figure between 2 per cent and 5 per cent lower than last year after weak second quarter results.

In terms of sales, Tiffany & Co’s third quarter results were slightly more positive. The company recorded a 4 per cent rise in global net sales to US$938 million (AU$1.3 billion) and a worldwide same-store sales increase of 1 per cent, which was said to have been driven by higher sales of fashion gold jewellery and statement jewellery.

A 6 per cent lift in total sales in the Asia-Pacific region on a constant-exchange-rate basis contributed to these results. Same-store sales also increased 2 per cent, with “healthy sales growth” recorded in Australia and China. However, in US dollar terms, Asia-Pacific sales fell 2 per cent to US$238 million (AU$331.1 m).

Other regions

The Americas and Europe reflected similar sales declines in US dollar terms, falling 7 per cent to US$425 million (AU$591.2 m) and 2 per cent to US$112 million (AU$155.8 m), respectively. Japan was the only region that reported an increase, with sales up 17 per cent to US$133 million (AU$185 m) in US dollar terms.

Frederic Cumenal, Tiffany CEO
Frederic Cumenal, Tiffany CEO

Sales in other regions were said to be “approximately equal to the prior year” at US$30 million (AU$41.7 m).

Tiffany & Co CEO Frederic Cumenal said the pressure from the strong US dollar had been expected. “In addition, we believe that volatile, uncertain economic and market conditions in the US and other regions are affecting consumer spending, causing us to maintain a cautious near-term outlook,” he said.

Despite this, Cumenal said he was pleased with he company’s progress in expanding its store base and introducing “compelling” new product designs.

“We are well prepared to delight our customers as they celebrate this holiday season, and our management team’s longer term strategy continues to call for further strengthening Tiffany’s solid position among global luxury brands, which we believe will ultimately drive improved financial results.”

At the end of October 2015, Tiffany & Co operated 305 stores globally, including 79 in the Asia-Pacific, 125 in the Americas, 56 in Japan, 39 in Europe, five in the United Arab Emirates and one in Russia.

More reading
Tiffany & Co jewellery moves to New Zealand
Tiffany & Co, Richemont show resilience
Tiffany & Co forecasts challenging year
Tiffany sales success led by fashion jewellery











SAMS Group Australia
advertisement





Read current issue

login to my account
Username: Password:
Jeweller Magazine
advertisement
Duraflex Group Australia
advertisement
SAMS Group Australia
advertisement
© 2024 Befindan Media