Tiffany beats the street – Americas rebound
Iconic Jeweler Tiffany & Co. has released its first full quarter earnings results under new CEO Alessandro Bogliolo – and they make for positive reading. The company said that a turn around in the Americas, as well as high demand for both cheaper jewelry and “high-end diamond pendants and rings” pushed earnings up.
Tiffany & Co.’s share price has risen by 19% year to date
SOURCE: Yahoo Finance
In the Americas, Tiffany saw its first rise in comparable sales after six straight quarters of decline. Europe and Japan were less favourable – logging a 1% decline – but Asia Pacific made up for that with a 2% gain. This gain was mainly driven by rising demand in Mainland China, and all of these figures are taken against the year-ago quarter.
Tiffany has been making headway with younger consumers in recent months. Traditionally, the company was a favourite with baby boomers, many of whom remember Audrey Hepburn, from the Hollywood classic Breakfast at Tiffany’s, as the ultimate “Tiffany’s girl”.
Now, the company is diversifying into lower price points and different fashions, such as silver alloy bracelets. When you have the kind of legacy Tiffany does, innovations like this are a bold move. GlobalData Retail managing director Neil Saunders says: “the point is that Tiffany is trying something new and is grabbing the attention of shoppers.”
The result of these innovations has been a boost to the company’s sales and brand. Millennials get why their parents loved Tiffany, and they’re taking part.
Overall, Tiffany saw revenues rise by 3% against the same period last year to $976.2 million, while net income increased by 5.4% to 80¢ per share. Analysts were expecting revenues of $957 million, and earnings per share of 76¢.
Dominion holds Tiffany & Co. in its Global Trends Luxury Fund.
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