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Worldwide sales reach £3.3bn for Tiffany & Co in 2018

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Luxury house Tiffany & Co has revealed worldwide net sales reached a record $4.4 billion (£3.3bn) in the 12 months of 2018.

The brand attributes this success to growth in all regions, and says it reflects high spending by local customers and tourists.

In total, net sales were 7% up year-on-year, while comparable sales increased by 4%. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into US dollars, worldwide net sales and comparable sales rose by 6% and 4%, respectively.

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The full-year accounts do not provided any information on how well the UK performed during the 12 months, but sales in Europe experienced a 3% increase to $504 million (£383m).

Sales of jewellery collections rose by 11% in the year, while engagement rings and designer jewellery sales increased by 4% and 1% respectively.

During the year Tiffany & Co opened 10 company-operated stores, while also closing four and relocating 10.

As of January 31, 2019, Tiffany operates 321 stores as opposed to 315 a year ago.

Chief executive officer at Tiffany’s, Alessandro Bogliolo, comments: “Our team is proud of its accomplishments in 2018 that contributed to net sales surpassing levels not seen since 2014. Softer trends in the second half of the year reflected, in part, what we believe were external challenges and uncertainties.

“Most important, we are still in the early stages of a journey to achieve long-term sales, margin and earnings growth for this legendary brand, and are making progress across our six key strategic priorities: Amplifying an evolved brand message; Renewing our product offerings and enhancing in-store presentations; 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. I continue to strongly believe that Tiffany has vast global growth opportunities and we look forward to realising our full potential in the future.”

The accounts also highlighted the brand’s performance during the fourth quarter. In the time, which includes holiday results, worldwide net sales declined by 1% to $1.3bn. This decline has been attributed to softer demand by local customers and foreign tourists across most regions and product categories, which management believes was affected, in part, by external events, uncertainties and market volatilities.

In Europe, sales declined by 3% to $162 million (£123m) in the fourth quarter,

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Stacey Hailes

The author Stacey Hailes

Editor, Professional Jeweller

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