Tiffany & Co’s first quarter monetary report confirmed a slight improve in international income, with the corporate heralding “pleasing” gross sales within the style jewelry class however not so optimistic ends in different areas.
The corporate’s international web gross sales for the three months ended 30 April 2017 rose 1 per cent to US$900 million (AU$1.2 billion) in comparison with the identical interval in 2016.
World same-store gross sales decreased three per cent in comparison with the earlier yr.
Asia-Pacific, which incorporates Australia, was the one area that reported a rise; gross sales rose eight per cent to US$257 million (AU$345 m). Similar-store gross sales declined three per cent.
Based on Tiffany & Co investor relations vice chairman Mark Aaron, Asia-Pacific’s regular income improve helped to offset the gross sales decline within the Americas, Europe and Japan.
“Our second largest area is Asia-Pacific, the place a rise in complete gross sales was because of increased wholesale gross sales and the impact of recent retailer openings over the previous yr,” Aaron mentioned throughout a convention name concerning the monetary outcomes on 24 Might.
Regardless of the combined end result, Aaron commented that the corporate was “on observe” to realize its full yr earnings prediction.
Aaron additionally acknowledged in the course of the convention name that Tiffany & Co’s style jewelry class – primarily consisting of non-gemstone gold and silver jewelry – carried out “comparatively higher” than different classes.
“Within the first quarter, white gold jewelry gross sales led the [fashion] class’s development,” Aaron mentioned, including the corporate’s style silver jewelry gross sales had been above these of the previous yr.
In different product classes, gross sales falling below the designer class posted “wholesome” will increase this quarter, whereas efficiency within the excessive high quality and solitaire class was “combined.”
Tiffany & Co watch gross sales had been described as “encouraging” however the engagement jewelry and marriage ceremony band class – arguably what the corporate is finest identified for – continued to “underperform”.
On the finish of April 2017, Tiffany & Co operated 310 shops globally, together with 84 within the Asia-Pacific, 124 within the Americas, 54 in Japan, 43 in Europe, 5 within the United Arab Emirates and one in Russia.
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