New CEO Alessandro Bogliolo has already invested in changes at Tiffany. Photo credit – Tiffany
Tiffany – the internationally renowned jewellery brand – has released financial results for the third quarter of 2017.
These generally showed a stagnant performance, with net sales increasing by 3% to $976 million whilst comparable store sales declined 1%.
New CEO Alessandro Bogliolo has already invested in changes at Tiffany, including expanding marketing activities, launching new products, and opening a cafe at the flagship store in New York.
Despite these changes, however, there’s only one market in which analysts see real cause for optimism in Tiffany’s performance at the moment.
In China, by contrast to the rest of the world, a company press release revealed that total sales increased 14% in the third quarter and 8% in the year-to-date, and comparable store sales increased 2% and declined 2%, respectively.
This situation reflects a growing appetite amongst Chinese consumers for luxury goods.
In a call with investors, Vice President of Investor Relations Mark Aaron had this to say about Tiffany’ performance in China:
”The (Asia-Pacific) region’s sales increase came from a continuation of very strong comparable store sales growth in Mainland China, increased wholesale sales in Korea to support strong duty free sales, and the effect of new stores.”
”While we were pleased with sales growth in Mainland China, we were also encouraged to see sales in Hong Kong almost flat with last year after three years of substantial declines.”
”During the quarter, we opened one store in Wuxi, China, and have several openings and relocations planned in the fourth quarter.”