American jewellery brand Tiffany & Co has reported a 12% rise in worldwide sales to $1.1 billion (£0.85bn) for Q2 2018.
This is the second consecutive quarter of “better-than-expected” results for Tiffany as the company continues to regain market share under the leadership of Alessandro Bogliolo.
For the fiscal quarter ending July 31, 2018, net earnings at Tiffany & Co ascended by 26% to $145 million (£112m), or $1.17 per diluted share, from $115 million (£89.2m), or $0.92 per diluted share, a year ago.
The healthy results have led management to increase its full-year earnings outlook.
While Tiffany does not break its results down by category, the report says all products saw a lift in sales.
Chief executive officer, Alessandro Bogliolo, comments: “While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reactions to our new communication, product and in-store initiatives. The launch of Paper Flowers, a floral collection in platinum and diamonds, is moving toward full global distribution and we believe our evolved brand message is gaining momentum.”
Looking ahead Tiffany & Co will accelerate activity in the areas mentioned by Bogliolo, with a special focus on product personalisation, high jewellery, a “whimsical” Christmas campaign, and the unveiled of a new innovative diamond ring concept – Tiffany True – in North America.
The CEO adds: “We are pleased with our sales and earnings growth and the strength and breadth of the results in the first half of 2018, but it’s worth noting that strategic investment spending is increasing for the remainder of the year, as expected, which is intended to support longer-term sustainable growth. Regarding that longer-term horizon, we are very excited to embark on our recently announced transformative multiyear remodeling of the New York City flagship building. We believe that the thoughtful combination of making short- and long-range strategic investments is necessary to achieve the full growth potential of this legendary brand.”
In Europe, total net sales rose 5% to $121 million (£93.9m) in the second quarter and 9% to $228 million (£176.9m) in the first half, reflecting the positive effects from currency translation, as well as sales in new stores, and comparable sales declined 1% and rose 1%, respectively.
On a constant-exchange-rate basis, total sales rose 2% in both the second quarter and first half; comparable sales declined 4% and 6%, respectively. Sales results were negatively affected in both the second quarter and first half by broad-based regional softness, which management attributed to lower spending by foreign tourists; comparable sales were also affected by negative effects from new stores on existing store sales.