EditorsNov 22, 2024
Out & About: Inside the CD Peacock MansionStep inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.
FinancialsMay 25, 2016
Tiffany’s Q1 Comps Drop 9% in a Difficult Quarter
Same-store sales fell in the United States too, with the jeweler stung by a slowdown in both tourist and domestic spending.
Tiffany’s global sales dipped 7 percent in the first quarter, with softness recorded across all product categories. The retailer, which returned to selling watches last year with the launch of the CT 60 collection, is looking to expand its watch business in the face of slipping jewelry sales.
New York--Tiffany & Co. had the difficult first quarter it expected, with sales dropping in almost every region and across all product categories.
In the Americas, same-store sales slid 10 percent (9 percent on a constant-exchange-rate basis) in the first quarter ended April 30, and total sales were down 9 percent (8 percent on a constant-exchange-rate basis) to $403 million.
Sales were down across the United States among both domestic customers and foreign tourists of all nationalities, Tiffany Vice President of Investor Relations Mark Aaron said on the company’s earnings call Wednesday morning.
Worldwide, Tiffany saw its net sales fall 7 percent from $962.4 million to $891.3 million. Same-store sales were down 9 percent. The jeweler saw sales slide in every region except Japan, where local customers drove an 8 percent gain in total sales and comps rose 12 percent.
While gross margin improved, it was not enough to offset the slow sales, and net earnings tumbled from $104.9 million to $87.5 million.
“Overall, these first quarter results generally represented a continuation of the softness in sales trends that we experienced in the latter part of 2015 and were largely what we expected,” Aaron said.
The company’s global same-store sales fell 5 percent in the fourth quarter, while third quarter comps were up only 1 percent.
In the first quarter 2016, sales were down across all product categories, though Aaron noted that bridal and fashion jewelry fared better than the jeweler’s higher-end collections.
Online sales, which accounted for 6 percent of Tiffany’s global sales in 2015, were up slightly. Aaron said the retailer is continuing its “duel focus” on online and brick-and-mortar business in order to build product and brand recognition and improve the customer experience. He also mentioned the launch of Tiffany’s already announced partnership with e-commerce site Net-a-Porter.
Tiffany also is working to a build up its watch business, an area in which the jeweler is particularly ambitious after returning to timepiece selling with the launch of the CT 60 collection last year.
Nicola Andreatta, head of the company’s timepiece unit, told Bloomberg in an interview published this week that Tiffany aims to become one of the top 10 watch brands in the world in the next 10 years.
Tiffany did not open any new stores in the Americas in the first quarter and does not plan to open any for the rest of
the fiscal year, though it is renovating stores in San Francisco, Beverly Hills and Vancouver, British Columbia.
Worldwide, the retailer plans to close 10 stores, open 11 and relocate six by fiscal year’s end.
As of April 30, Tiffany operated 308 stores worldwide, including 124 in the Americas, up from 298 a year ago, 123 of which were in the Americas.
Given its first quarter results, Tiffany downgraded its expectations for the year. It now expects a low-single-digit year-over-year decline in sales.
Worldwide, the retailer plans to close 10 stores, open 11 and relocate six by fiscal year’s end.
As of April 30, Tiffany operated 308 stores worldwide, including 124 in the Americas, up from 298 a year ago, 123 of which were in the Americas.
Given its first quarter results, Tiffany downgraded its expectations for the year. It now expects a low-single-digit year-over-year decline in sales.
More on Financials
The Latest
CollectionsNov 22, 2024
Piece of the Week: Xander Jane’s ‘Spiked’ Pearl StudsThese punk-inspired earrings from the new Canadian brand’s debut collection reveal the alter ego of the classic pearl.
SourcingNov 22, 2024
Facets of Fire Expands to Include Pear, Marquise DiamondsThe company brings its nanotechnology to two new fancy cuts for diamonds that feature its signature color and brilliance.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
Weekly QuizNov 21, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
