Tiffany’s same store sales decline
Jeweller Tiffany has reported that worldwide net sales increased 3% to $960 million in its second quarter although comparable store sales declined by 2%.
The company said growth in fashion and designer jewellery sales contrasted with softness in other jewellery categories.
Comparable store sales were down in all of Tiffany’s major regions excluding Japan. This included a 1% fall in the US.
The results meant that first half worldwide net sales were 2% higher year-on-year at $1.9 billion while comparable store sales were 2% below the prior year.
First half net earnings rose by 8% to $208 million, or $1.66 per diluted share, from $193 million, or $1.53 per diluted share, a year ago.
Michael Kowalski, chairman and interim chief executive of Tiffany, said: “While net earnings rose in the first half, we remain determined to drive comparable store sales growth and stronger, sustainable earnings growth through a continued focus on product design innovation in jewellery and luxury accessories, further optimisation of our store base, more impactful marketing communications and highly effective customer engagement both in-store and online.”
Tiffany has recently announced the appointment of Alessandro Bogliolo as its new chief executive who is set to join the company in October. Bogliolo previously served for 16 years at Bulgari in the roles of chief operating officer and executive vice president for jewellery, watches and accessories. Most recently, he was chief executive of global apparel and accessories company Diesel.
