New York-based luxury jeweller Tiffany & Co. said its worldwide net sales for the full year that ended January 31st 2018 increased 4% to $4.2 billion, reflecting sales growth in most regions and across most jewellery categories. In the full year, net earnings of $370 million were 17% below the prior year’s $446 million. However, net earnings in 2017 included charges recorded in the fourth quarter totalling $146 million related to the enactment of the U.S. Tax Cuts and Jobs Act.
In the fourth quarter, Tiffany’s worldwide sales rose 9% to $1.3 billion, resulting from growth in all regions and across all product categories; comparable store sales rose 3%. On a constant-exchange-rate basis, worldwide net sales rose 6% and comparable store sales were 1% above the prior year. Fourth-quarter net earnings of $62 million, or $0.50 per diluted share, were 61% below the prior year’s $158 million, or $1.26 per diluted share.
Alessandro Bogliolo, chief executive officer, Tiffany & Co., said, “We are pleased to be finishing the year with solid sales growth, both geographically and across product categories. Most important, however, is to generate sustainable growth in sales, margins and earnings over the long-term. Confirming what we recently indicated, we believe that increasing investment now in certain areas, such as technology, marketing communications, visual merchandising, digital and store presentations, which we expect will hinder pre-tax earnings growth in the near-term, is needed to generate that lasting long-term growth.
“We have assessed our business and are focused on the following six strategic priorities: Amplifying an evolved brand message; renewing our product offerings and enhancing in-store presentation; delivering an exciting omni-channel customer experience; strengthening our competitive position and leading in key markets; cultivating a more efficient operating model; and, inspiring an aligned and agile organisation to win.”
In the Americas, total net sales rose 2% to $1.9 billion in the full year and 5% to $619 million in the fourth quarter. In Asia-Pacific, total net sales increased 10% to $1.1 billion in the full year and 13% to $320 million in the fourth quarter. Total net sales growth reflected higher wholesale and retail sales; on a comparable store sales basis, the full year decline reflected strong sales growth in mainland China that was offset by lower sales in most other countries, while the fourth quarter sales growth benefited from performance across Greater China.
In Japan, total net sales of $596 million in the full year were 1% below the prior year, while sales in the fourth quarter rose 2% to $189 million. In Europe, total net sales rose 6% in the full year to $483 million and 13% to $165 million in the fourth quarter, reflecting the positive effects from currency translation, new stores and e-commerce sales growth.
Tiffany opened nine company-operated stores in the full year and closed seven. As of January 31st 2018, the company operated 315 stores (124 in the Americas, 87 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the UAE), versus 313 stores a year ago (125 in the Americas, 85 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE).