Tiffany & Co. Worldwide Net Sales -7% to $891 Million in Q1 2016
May 25, 16
(IDEX Online News) – Tiffany & Co. reported worldwide net sales of $891 million during the first quarter of 2016 – a 7-percent decline compared to the same period the previous year.
The company said that comparable store sales, which declined 9 percent in the period, were according to CEO Frederic Cumenal, adversely affected due weak tourist spending in a number of markets, particularly Hong Kong.
In the Americas, total sales on a constant-exchange-rate and comparable store sales declined 8 percent and 9 percent respectively. In US dollars, total sales declined 9 percent to $403million.
Total sales in the Asia-Pacific region on a constant-exchange-rate basis fell 5 percent and comparable store sales dropped 12 percent. Total sales of $238 million represented an 8-percent decline on the prior year, exacerbated by weakness in Hong Kong, despite sales growth in China and Korea.
In Japan, total sales on a constant-exchange-rate basis rose 1 percent and comparable store sales increased 5 percent. In US dollars, total sales improved 8 percent to $131 million, which was attributed to higher domestic spending.
Total sales in Europe on a constant-exchange-rate basis decreased 7 percent, and comparable store sales declined 14 percent. In US dollars, total sales decreased 15 percent to $97 million, which Tiffany’s management said was due to a sharp decrease in tourist spending, particularly in France.
Other sales declined 30 percent to $22 million, and comparable store sales declined 21 percent, reflecting lower retail sales in the United Arab Emirates and wholesale sales in other markets.
“From a strategic perspective, we believe that our initiatives will enhance our ability to provide our customers with extraordinary products and experiences and ultimately contribute to improved financial results,” said Cumenal. “We remain focused on generating sustainable long-term sales and earnings growth."
As of April 30, Tiffany & Co. operated 308 stores compared with 298 stores in the same period a year previously.