New Tiffany & Co boss, Alessandro Bogliolo, who joined the company last July, has stated he won’t be satisfied until growth reflects the “full potential of the brand”.
Last week Tiffany & Co announced its financial year results for the full year ending January 31, 2018, posting a 4% increase in worldwide net sales to $4.2 billion, while the brand also recorded 9% sales growth for the fourth quarter.
Despite an increase in sales though, the brand highlighted a need to ramp up investment in certain areas in order to generate sustainable growth in sales, margin and earnings over the long-term, with the CEO stating: “We will only be truly satisfied when we create greater excitement for our customers and also generate growth that reflects the full potential of our brand.”
Bogliolo continues: “We are pleased to be finishing the year with solid sales growth, both geographically and across product categories. Most important, however, is to generate sustainable growth in sales, margins and earnings over the long-term. Confirming what we recently indicated, we believe that increasing investment now in certain areas, such as technology, marketing communications, visual merchandising, digital and store presentations, which we expect will hinder pre-tax earnings growth in the near-term, is needed to generate that lasting long-term growth.”
Since joining Tiffany & Co, chief exec Alessandro Bogliolo, has been renovating stores and offering new designs, such as the HardWear collection promoted by superstar Lady Gaga in a bid to attract younger shoppers.
Following an assessment of the business, Bogliolo says Tiffany and Co will focus on the following six strategic priorities:
- Amplifying an evolved brand message
- Renewing product offerings and enhancing in-store presentation
- Delivering an exciting omnichannel customer experience
- Strengthening the brand;s competitive position and leading in key markets
- Cultivating a more efficient operating model
- Inspiring an aligned and agile organisation to win
Bogliolo concludes: “The Tiffany & Co brand is strong and we have a very talented, dedicated and passionate team to pursue these strategic priorities and lead us to success. We are committed to nurturing the exceptional legacy we have been entrusted.”