Greater China fuels record sales for Tiffany & Co
Tiffany & Co has reported worldwide net sales rose by 7 per cent to a record US$4.4 billion last year, fuelled by solid growth across almost every Aian market.
In Asia-Pacific, total net sales increased 13 per cent to $1.2 billion for the full year, with Greater China leading the charge. However, sales slipped 1 per cent to $316 million in the fourth quarter, largely due to a slowing of spending in Mainland China.
Comparable sales rose 5 per cent during the full year and fell 3 per cent in the fourth quarter. In Japan, total net sales increased 8 per cent to $643 million in the full year and 3 per cent to $196 million in the fourth quarter. Comparable sales increased by 7 per cent and 3 per cent, respectively.
The company’s net earnings for the full year benefited from a lower effective tax rate, rising to $586 million. 75 per diluted share.
CEO Alessandro Bogliolo said softer trends in the second half of the year reflected, in part, what the company believes were external challenges and uncertainties.
“Most important, we are still in the early stages of a journey to achieve long-term sales, margin and earnings growth for this legendary brand, and are making progress across our key strategic priorities. I continue to strongly believe that Tiffany has vast global growth opportunities and we look forward to realising our full potential in the future.”
During the year, Tiffany opened 10 company-operated stores, closed four and relocated 10. As at the end of January, the company operated 321 stores (124 in the Americas, 90 in Asia-Pacific, 55 in Japan, 47 in Europe, and five in the UAE). There was a net gain of three in Asia.