CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
FinancialsAug 29, 2018
Tiffany’s Sales in the Americas Are Up 8% So Far This Year
And CEO Alessandro Bogliolo teased the introduction of what the company describes as an “innovative diamond ring concept.”
Tiffany-blue taxi cabs lined up outside the jeweler’s New York City flagship store earlier this spring. The retailer conceived a creative marketing campaign to mark the launch of the “Paper Flowers” collection, and CEO Alessandro Bogliolo said the retailer is “pleased” with customer reactions to both so far.
New York—Tiffany & Co.’s turnaround plan seems to be working.
On Tuesday, the New York-based retailer reported better-than-expected second quarter and first half results, and raised its guidance for the full year.
In the Americas region (United States, Canada, Mexico, Brazil and Chile), total net sales rose 8 percent in both the first half and second quarter, with same-store sales rising 9 percent and 8 percent, respectively. (Percentage increases were the same on a constant-exchange-rate basis.)
Sales rose across most of the region, Tiffany said, with spending by local customers—not tourists—accounting for the increase.
Worldwide, net sales increased 12 percent (11 percent on a constant-exchange-rate basis) to $1.1 billion in the second quarter, with same-store sales rising 8 percent (7 percent on a constant-exchange-rate basis).
Meanwhile, first-half total sales were up 13 percent (11 percent on a constant-exchange-rate basis) to $2.1 billion and comps rose 9 percent (7 percent on a constant-exchange-rate basis).
Net earnings increased 26 percent year-over-year in the second quarter and 38 percent in the first half of the year.
Gross margin improved from 62.5 percent to 64 percent in the second quarter, and from 62.3 percent to 63.5 percent in the first half.
In the company news release announcing the results, CEO Alessandro Bogliolo teased the introduction of what he called an “innovative diamond ring concept,” Tiffany True, in North America in the second half of the year, along with a special focus on product personalization, high jewelry and a “whimsical holiday campaign.”
He also said: “While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reaction to our new communication, product and in-store initiatives. The launch of ‘Paper Flowers’ … is moving toward full global distribution, and we believe our evolved brand message is gaining momentum.”
The retailer backed the launch of Paper Flowers with a new marketing campaign, “Believe in Dreams,” which involved painting the town its signature robin’s egg blue, covering New York City icons like taxi cabs and subway stations in the cool tone.
Paper Flowers is the first new major collection since Tiffany Keys in 2009 and the first designed under Reed Krakoff.
It helped propel the company’s in-house jewelry lines to become the top performer of 2018 so far, with Tiffany Jewelry Collections outselling both engagement rings and designer lines from Paloma Picasso and Elsa Peretti.
Looking ahead to the remainder of 2018, the retailer
Editors' Picks
Sponsored by
has increased its financial guidance.
Tiffany now forecasts sales will rise by a high-single-digit percentage over last year, though it does expect operating margin to sink due to significant selling, general and administrative expense growth, which includes the money it is spending to renovate its Fifth Avenue flagship and increased investments in marketing and technology.
“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,” Bogliolo said.
Tiffany ended the second quarter with 320 stores worldwide, up from 312 a year ago.
Its store count in the Americas remained largely flat year-over-year: 123 as of July 31 compared with 124 at the same point last year.
Tiffany now forecasts sales will rise by a high-single-digit percentage over last year, though it does expect operating margin to sink due to significant selling, general and administrative expense growth, which includes the money it is spending to renovate its Fifth Avenue flagship and increased investments in marketing and technology.
“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,” Bogliolo said.
Tiffany ended the second quarter with 320 stores worldwide, up from 312 a year ago.
Its store count in the Americas remained largely flat year-over-year: 123 as of July 31 compared with 124 at the same point last year.
More on Financials
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
