Tiffany & Co. Posts Lackluster Monetary Outcomes For First Quarter

Might 24, 17 by Albert Robinson

(IDEX On-line) – Tiffany & Co. reported anemic monetary outcomes for the three months ended April 30.

 

Worldwide web gross sales rose 1 % to $900 million as a result of development in Asia-Pacific and a rise within the wholesale sale of diamonds, whereas comparable retailer gross sales had been three % under the prior yr.

 

Web earnings of $93 million in contrast with $87 million, a yr in the past.

 

Michael J. Kowalski, Chairman of the Board and Interim Chief Govt Officer, mentioned, “Whereas these outcomes modestly exceeded our near-term expectations, we’re targeted on executing long-term methods to attain stronger and sustainable efficiency by means of product introductions, optimization of our retailer base, efficient advertising communications and the supply of experiences that resonate with our prospects. In so doing, we consider Tiffany & Co. is well-positioned to generate a lovely complete shareholder return over the long-term.”

 

Web gross sales by area within the first quarter had been as follows:

 

  • Within the Americas, complete gross sales of $392 million had been three % decrease than the prior yr and comparable retailer gross sales declined four %. There was no influence from forex translation on reported gross sales. Gross sales outcomes had been geographically combined throughout the area, and administration attributed the general gross sales declines to decrease spending by each overseas vacationers and native prospects.

 

  • Within the Asia-Pacific area, complete gross sales of $257 million had been eight % above the prior yr, whereas comparable retailer gross sales declined three %. Administration attributed complete gross sales development to elevated wholesale gross sales and the impact of shops opened up to now yr, whereas comparable retailer gross sales had been affected by sturdy development in mainland China and ranging levels of softness in different markets. On a constant-exchange-rate foundation, complete gross sales rose 9 % and comparable retailer gross sales declined 2 %.

 

  • In Japan, complete gross sales of $128 million had been 2 % under the prior yr, and comparable retailer gross sales declined 1 %. Administration attributed the gross sales declines to decrease spending by Chinese language vacationers. On a constant-exchange-rate foundation, complete and comparable retailer gross sales declined three % and 1 %, respectively.

 

  • In Europe, complete gross sales declined three % to $94 million and comparable retailer gross sales additionally declined three %. On a constant-exchange-rate foundation, complete gross sales and comparable retailer gross sales rose four % and three %, respectively. Efficiency was typically comfortable in continental Europe, whereas administration attributed gross sales development in the UK on a constant-exchange-rate foundation to spending by native prospects and overseas vacationers.

 

  • Different gross sales in complete rose 32 % to $28 million as a result of a rise in wholesale gross sales of diamonds.

 

  • Tiffany didn’t open any company-operated shops within the first quarter and closed three. At April 30, 2017, the corporate operated 310 shops (124 within the Americas, 84 in Asia-Pacific, 54 in Japan, 43 in Europe, and 5 within the UAE), versus 308 shops a yr in the past (124 within the Americas, 81 in Asia-Pacific, 55 in Japan, 43 in Europe, and 5 within the UAE).

 

Administration’s outlook for the fiscal yr ending January 31, 2018 (fiscal 2017) requires worldwide web gross sales growing over the prior yr by a low-single-digit proportion.

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