Supplier BulletinJul 03, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
FinancialsJun 09, 2020
Tiffany’s U.S. Sales Fall 45% in Q1
The jeweler saw a steep decline in worldwide sales as the COVID-19 pandemic kept its stores shuttered.
The redesigned Tiffany & Co. flagship store at Shanghai Hong Kong Plaza. The jeweler’s sales took a double-digit hit in the Asia-Pacific region, and in all regions, amid pandemic-related store closures. (Image courtesy of Tiffany & Co.)
New York—Tiffany & Co. posted a double-digit drop in worldwide sales as the luxury jeweler grapples with the closure of its stores amid the coronavirus pandemic.
Its fiscal year began Feb.1 and ended April 30, so the COVID-19 pandemic had an effect on the entire first quarter.
Worldwide net sales in the first quarter sank 45 percent to $556 million, compared with $1 billion a year ago. Same-store sales also plummeted 44 percent.
As of April 30, 70 percent of Tiffany’s stores worldwide remain closed, though reopenings are happening slowly.
CEO Alessandro Bogliolo described the first quarter as “very challenging,” in a press release, and said he expects the impact of COVID-19 to negatively affect the company’s full-year sales and earnings relative to 2019.
Though Tiffany did not provide guidance for the year ahead, Bogliolo said: “I am confident Tiffany’s best days remain in front of us because there is evidence that the strategic decisions we took to focus on our mainland China domestic business, global e-commerce, and new product innovation are paying off - even against the backdrop of a global pandemic.”
RELATED CONTENT: What Tiffany’s Acquisition Means for the Jewelry Industry
Tiffany’s online sales performed well, he said, noting sales were up 23 percent worldwide with the U.S. seeing a 14 percent increase. In May, online sales more than doubled those of last May with increases seen in every region.
Online sales now account for 15 percent of total sales, more than double the 6 percent posted in the last three fiscal years.
In the Americas, where the most Tiffany stores are located, net sales in the first quarter fell 45 percent to $225 million with same-store sales down 45 percent as nearly all stores in the region closed in mid-March and remained closed through the end of the quarter.
In the Asia-Pacific region, first-quarter net sales were down 46 percent to $174 million with same-store sales falling 45 percent, also due to store closures.
Stores in mainland China began to reopen in February with 85 percent of Tiffany’s locations partially or fully open by April 30.
Bogliolo said the jeweler’s performance in mainland China is a sign “that a robust recovery is underway.”
He noted that while retail sales in mainland China were down 85 percent in February and down 15 percent in March, they were up 30 percent by April, each as compared year-over-year.
By May, retail sales were up approximately 90 percent in spite of global sales being down 40 percent that month, compared with last May.
European sales fell 40 percent to $61 million in the first quarter with same-store sales down 42 percent.
Store closures were behind the decline in Europe as well, though stores began to slowly reopen around April with 15 percent of its locations partially or fully open by April 30.
In Japan, sales declined 40 percent in the quarter to $86 million with same-store sales down 41 percent, due to store closures combined with a drop in tourist traffic.
As of April 30, approximately 5 percent of its stores in the region were fully or partially open.
Sales from the “other” segment, which includes five Tiffany stores in the United Arab Emirates, sank 65 percent to $9 million due to the impact of the coronavirus and lower wholesale sales of diamonds.
By category, sales from Tiffany’s jewelry collections, which includes lines like “Paper Flowers,” fell 44 percent while engagement jewelry sales were down 49 percent.
The new Tiffany T1 collection is “off to a tremendous start,” said Bogliolo, noting its sales through May were in line with the company’s initial projections in spite of the store closures.
The company expects year one sales of the collection to eclipse year one sales of both the Tiffany HardWear and Paper Flowers collections combined.
It may even surpass sales of Tiffany T-color, said Bogliolo, which was launched last October and is often out-of-stock due to “overwhelming demand.”
Sales of jewelry from designers Elsa Peretti, Paloma Picasso and Tiffany & Co. Schlumberger fell 39 percent in the first quarter.
As of April 30, there were 324 Tiffany stores in operation worldwide, including 123 in the Americas, one fewer than in the fourth quarter. Two stores closed and two relocated.
Tiffany did not hold an earnings call or provide fiscal guidance due to its pending acquisition by LVMH.
The deal was said to be on thin ice due to the deteriorating situation in the U.S. market, but Bogliolo stated that Tiffany will continue on its “journey with LVMH by our side.”
The merger also received regulatory approval from Russia and Mexico as it looks to clear antitrust/competition barriers.
Tiffany has also amended its debt agreements to give itself “ample headroom” to remain in compliance with its financial agreements, said CFO Mark Erceg in a press release, though he noted the company is in compliance with all debt covenants as of April 30.
The company plans to “significantly” reduce costs and lower its capital expenditures by postponing select projects for the year, though it did not get into specifics, as a way to protect its earnings and preserve cash.
More on Financials
The Latest
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New AmbassadorThe 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry HallThe West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-NegativeThis past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.
Weekly QuizJul 02, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From YepremThe brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in BurglariesJSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast FlagshipLocated on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.
MajorsJul 02, 2025
Marco Bicego Opens Milan FlagshipThe new location continues the brand’s celebration of its 25th anniversary.
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New CampaignThe online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive DirectorShe will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry NetworkWorking with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.
MajorsJul 01, 2025
Cast Closes Business, Plans for RelaunchThe jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship ProgramThe company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73He is remembered for his successful entrepreneurship, generosity, and dedication to his family.
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report SaysThe jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.
TrendsJul 01, 2025
Amanda’s Style File: Red Hot RubiesWelcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry SalesThe best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education ScholarshipThis year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry“The Jewelry Book” comes out this September.
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech PlatformThe company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.
IndependentsJun 27, 2025
David Webb Announces New Hires, PromotionsFollowing its recent acquisition, the storied brand has updated its leadership team and regional managers.
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner AGS also named the recipient of its “Women in Leadership” scholarship.
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap RingThe 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers DownsizesRocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.
