Financials

Tiffany’s Sales Take a Hit in the Americas

FinancialsDec 05, 2019

Tiffany’s Sales Take a Hit in the Americas

The jeweler fell short of revenue and same-store sales expectations in Q3 due to weak demand in the Americas and unrest in Hong Kong.

20191024_Tiffany_Five_Golden_Rings.jpg
The “Five Golden Schlumberger Rings” ($210,000) featured in Tiffany & Co.’s new high-end holiday gift guide. The jeweler fell short of revenue and same-store sales expectations in the third quarter.

New York—Tiffany & Co. missed the mark on revenue and same-store sales in the third quarter as demand in the Americas weakened and the toll of the Hong Kong protests outweighed growth in mainland China.

It was the American jeweler’s first earnings report since announcing its pending acquisition by French luxury titan LVMH Moët Hennessy Louis Vuitton in a deal valued at $16.2 billion.

Net sales in the third quarter were unchanged at $1.014 billion, compared with $1.012 billion a year ago.

Same-store sales were also flat.

The jeweler fell short of analyst expectations of $1.037 billion in revenue with same-store sales growth of 1 percent.

Excluding the Hong Kong market, worldwide sales increased 4 percent with same-store sales rising 3 percent.

Gross profit dipped 1 percent to $625.7 million, or 62 percent of sales, compared with $629.3 million, or 62 percent of sales, a year ago.

“Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas,” CEO Alessandro Bogliolo said in a press release.

(Tiffany did not hold an earnings call discussing the results.)

Net sales in the Americas, where the most Tiffany stores are located, were down 4 percent to $423 million due in part to a decline in sales from both local customers and tourists.

Same-store sales in the region also fell 4 percent.

European sales fell 3 percent to $111 million, attributed to the effect of foreign currency translation, while same-store sales were unchanged.

Asia-Pacific sales were flat at $294 million, also attributed to foreign currency translation, while same-store sales were down 2 percent.

Tiffany highlighted its double-digit growth in mainland China while noting the effect of “significant disruptions” in Hong Kong related to the ongoing political unrest in the region.

Higher spending by locals was offset by a dip in tourist spending.

In Japan, third-quarter sales soared 19 percent to $169 million with same-store sales also up 19 percent.

Tiffany attributed the growth to customers getting in last-minute shopping before the country’s consumption tax hike took effect in October, rising from 8 percent to 10 percent on most goods.

Sales from the “other” segment, which includes five Tiffany stores in the United Arab Emirates, fell 13 percent to $17 million while same-store sales were down 3 percent.

By category, sales from Tiffany’s jewelry

collections, which includes lines like “Tiffany T” and “Paper Flowers,” and sales from its engagement jewelry, were unchanged.

Sales of jewelry from designers Elsa Peretti, Paloma Picasso and Tiffany & Co. Schlumberger increased 1 percent.

Bogliolo noted in the second-quarter earnings call in August that the company plans to “properly refresh our product assortment,” by fiscal 2021.

The jeweler recently added colorful pieces to its “Tiffany T” collection, introduced a men’s collection, launched his and hers Tiffany & Love fragrances, and the new “Very, Very Tiffany” holiday campaign and catalog featuring luxe, high-ticket gift items.

As of Oct. 31, there were 323 Tiffany stores in operation worldwide, including 124 in the Americas, compared with 321 a year ago.

Tiffany did not provide guidance for the year ahead, but Chief Financial Officer Mark Erceg noted in the second quarter that if the ongoing unrest in Hong Kong continues, the jeweler’s full-year sales and EPS (earnings per share) could come in at the lower end of its guidance range.
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Natural Diamond Council Diamond Learning Center Graphic
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning Center

The free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.

Jewelers of America logo
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from Members

The feedback will be used to prepare other jewelers for the challenges ahead, the organization said.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy