How Tiffany & Co Increased Net Earnings By 53%

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By Published On: May 24, 20180 Comments

High-end jewellery retailer, Tiffany & Co, has reported its earnings for Q1, and things are looking bright for the luxury business as better-than-expected results allow the company to increase its outlook for FY19.

The American-based luxury jewellery business has reported stellar results for the quarter ending April 30, 2018, with worldwide net sales rising by 15 percent, which combined with higher operating margins and lower effective tax rates, has seen the business close Q1 with a 53 percent increase in net earnings.

According to Alessandro Bogliolo, Tiffany & Co’s CEO, the businesses net sales reached $142 million, up from last year’s $93 million, which is above the company’s initial expectations.

“We are 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,” he said in a media release announcing the results.

“Most importantly, however, we remain focused on achieving sustainable growth in comparable sales, operating margin and earnings.”

Bogliolo attributes this success to the six strategic priorities the brand put into place back in March: amplifying an evolved brand message, renewing product offerings, enhancing in-store presentation, delivering an exciting omnichannel customer experience, strengthening its competitive position and leading in key markets, and cultivating a more efficient operating model.

“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. Additions to existing product collections will follow throughout the year,” Bogliolo said.

The company has also been running a ‘Believe in Dreams’ campaign, featuring Elle Fanning wearing iconic Tiffany’s jewellery, which Bogliolo claims focuses on the company’s priority of amplifying its existing brand message.

One of the biggest regions Tiffany experienced growth in was in Asia-Pacific, with the company recording a 28 percent increase to $329 million, with Greater China and wholesale sales in Korea generating the most revenue. It’s believed this higher spending comes from a combination of local consumer spending and that of tourists. Comparable sales for the region also rose 14 percent.

Across the rest of the world, net sales in Europe increased by 13 percent to $107 million, while sales in the Americas grew by nine percent to $425 million. Japan also experienced a period of high growth, clocking an extra 17 percent in sales to $151 million.

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