Tiffany & Co reports ‘better-than-expected’ first quarter results

American jewellery brand Tiffany & Co has reported a 15% rise in worldwide sales to $1 billion (£0.74bn) for Q1 2018, which the brand describes as “strong” and “better-than-expected” results.

Despite posting full-year growth last year, the brand’s chief exec said he will not be satisfied until revenue increase matches the “full potential” of the brand.

Staying true to his word, management has been investing heavily in the brand this year, with tiffany & Co pulling out all the stops for the launch of its new collection ‘Paper Flowers’ and media campaign ‘Believe in Dreams’ in New York City last month.

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Tiffany & Co attributes revenue growth for the three months ending April 30, 2018 to its increased investment.

During Q1 growth in worldwide net sales, which the company says is from broad-based sales growth while comparable sales increased 10%, combined with a higher operating margin and a lower effective tax rate, resulted in a 53% increase in net earnings.

Net sales increased in all major religions, with strong sales growth occurring in all jewellery categories.

Based on this performance, the management revised upward its outlook for the full year ending January 31, 2019.

The brand’s chief executive officer, Alessandro Bogliolo, shares: “We are very pleased with this start to the fiscal year, and we are particularly encouraged by the breadth of sales growth across most regions and all product categories. Most importantly, however, we remain focused on achieving sustainable growth in comparable sales, operating margin and earnings by pursuing and investing in the six strategic priorities we put forward in March: Amplifying an evolved brand message; Renewing our product offerings and enhancing in-store presentation; Delivering an exciting omnichannel customer experience; Strengthening our competitive position and leading in key markets; Cultivating a more efficient operating model; and Inspiring an aligned and agile organization to win.”

He continues: “In line with the priority of renewing our product offerings, we are excited about the recent unveiling of Paper Flowers, a major collection in platinum and diamonds, ranging from fine to high jewellery.”

Simultaneously, our new campaign, ‘Believe in Dreams’, has debuted across print and digital media. The fresh and whimsical communication, featuring Elle Fanning wearing some of Tiffany’s most iconic jewellery, is a further step in the priority of amplifying an evolved brand message.”

As previously announced, beginning in the second quarter and for the balance of the year, Tiffany & Co will be stepping up its spending in certain areas as part of its commitment to reaching the “full, long-term and sustainable growth potential” of the brand.

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