Tiffany Worldwide Net Sales-2% in Q3 2015
November 24, 15
(IDEX Online News) – Tiffany & Co. has announced that its net sales decreased 2 percent in the third quarter (on a constant exchange rate basis). Net earnings declined 8 percent.
Worldwide net sales were $938 million, compared with $960 million in Q3 2014. Net earnings dropped 8 percent to $91 million from $99 million the prior year, on the back of a strong US dollar.
In the first nine months of the year (ended October 31), net sales declined 2.5 percent to approximately $2.89 billion, down from $2.96 billion.
On a constant-exchange-rate basis, both worldwide net sales and comparable store sales increased 4 percent due to growth in Japan, Europe and Asia-Pacific, as well as increased sales of fashion gold jewelry and statement jewelry – although this was partly offset by lower sales in the Americas.
In the Americas, total sales and comparable store sales in the third quarter were 5 and 6 percent below the prior year respectively. Year-to-date, total and comparable sales also declined by 1 and 2 percent respectively.
Total US sales were $425 million in the third quarter and $1.3 billion in the first nine months – a slip of 7 percent and 3 percent over the same periods in 2014, largely as a result of lower tourist spending on the back of a strong US dollar.
In the Asia-Pacific region, total sales increased 6 percent, though on a constant-exchange-rate basis the value fell 2 percent to $238 million in the third quarter.
Total sales in Japan rose 17 percent to $133 million in the third quarter, but declined 6 percent to $380 million in the year-to-date.
Total sales in Europe declined 2 percent to $112 million in the third quarter, but rose 1 percent to $338 million in the year-to-date.
"As expected, the strong US dollar continued to put pressure on our financial results, specifically from the translation of non-US sales into dollars and on foreign tourist spending in the US,” said CEO Frederic Cumenal.
“In addition, we believe that volatile, uncertain economic and market conditions in the US and other regions are affecting consumer spending, causing us to maintain a cautious near-term outlook.”
Tiffany opened two company-operated stores in the third quarter in Santiago, Chile; and in Macau, while closing one in Korea.