Tiffany & Co., releasing  its financial results for the three months (third quarter) and nine months (year-to-date) ended October 31, 2017, reported that mainly  due  to increase in sales worldwide and  higher operating margins, earnings per diluted share for both periods saw a rise. 

 In Q3 net sales worldwide increased 3% to US$ 976 million, while comparable store sales declined 1%. This was reflective of    sales growth in most regions, the retailer said; and also indicated increase in sales in both, the Fashion Jewellery and the High, Fine & Solitaire Jewellery categories.

 “On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars … worldwide net sales increased 3% and comparable store sales were equal to the prior year,” Tiffany elaborated.

Tiffany’s net earnings increased 5% to US$ 100 million, or US$ 0.80 per diluted share; as compared to net earnings of US$ 95 million, or US$ 0.76 per diluted share, in the same period of the previous year.

For the nine months ended October 31,2017, or year-to-date,  worldwide net sales amounted to US$ 2.8 billion, a figure  2% above sales in the same period of the previous year; and comparable store sales declined 2%. “On a constant-exchange-rate basis, worldwide net sales increased 3% while comparable store sales declined 1%,” Tiffany revealed.

For the nine month period, net earnings increased 7% to US$ 308 million, or US$ 2.46 per diluted share, compared with US$ 288 million, or US$ 2.29 per diluted share, in the previous year.

Regionwise, Tiffany’s total sales in the Americas, touched    US$ 421 million in the third quarter and were 1% above the previous year for the third quarter; and total sales of $1.3 billion for year-to-date  were approximately equal to the same period  of the prior year.

The Asia-Pacific region  saw total sales rising by 15% to US$ 283 million in the third quarter;  and  by 8% to US$ 775 million in the year-to-date period. While Mainland China saw strong sales, a decline was registered in other countries of the region.

Japan accounted for  total sales of US$ 139 million in the third quarter and US$ 407 million in the year-to-date; which were, respectively,  8% and 3% below the same periods of the previous year.  

In Europe, total sales increased 5% in the third quarter to US$ 110 million; and in the year-to-date period rose 2% to US$ 318 million. While most other countries showed a growth in sales, sales in the UK, notably, declined. 

“Other sales of US$ 23 million in the third quarter were 26% below the prior year while year-to-date sales of US$ 84 million were 18% above the prior year, primarily reflecting a decline in wholesale sales of diamonds in the quarter and an increase in the year-to-date; comparable store sales increased 7% in the quarter and were unchanged in the year-to-date,” Tiffany reported.

The luxury jewellery retailer opened seven company-operated stores in the year-to-date period, and closed five. As at October 31, 2017, the Company operated 315 stores (125 in the Americas, 86 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the UAE), compared to  313 stores a year ago (125 in the Americas, 85 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE).

Tiffany’s management announced that it was maintaining its outlook for Fiscal 2017.

Alessandro Bogliolo, Chief Executive Officer, who joined Tiffany in October, commented, “Tiffany is such an inspiring brand with an incredibly rich legacy, traditions of excellence in craftsmanship and design, and leadership in sustainability. I am very excited to be leading our team and enthusiastic about the tremendous opportunities we have to further develop our global business. These latest financial results marginally exceeded our expectations, but I believe that Tiffany has the medium to long-term potential to achieve meaningful comparable store sales growth and drive higher operating margins and earnings growth. Looking forward, we will increasingly capitalise on the strength of the Tiffany & Co.. brand with stronger organisational focus on innovation in product, digital, communication and the customer experience.”