The US listed luxury company Tiffany (TIF) said on June 4th, that major part of the company sales growth came from China. The company net sales were about 1000 million dollars during the first quarter, ending April 30th. Compared to last year figures, the decline was 3 procent.
– Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results. We believe this growth in sales to local customers reflects progress in executing our strategic priorities, including innovations across products, communications and the customer experience, and that Tiffany is positioned for improving trends in the second half of 2019, said the Group´s CEO Alessandro Bogliolo in the company press release.
Tiffany´s worldwide net sales declined 3% to 1.0 billion dollars and comparable sales declined 5%. On a constant-exchange-rate basis, net sales were equal to the earlier year and comparable sales declined 2%.
Net earnings of 125 million dollars were 12% lower than the earlier year’s 142 million dollars. Net earnings per diluted share were 1.03 dollars compared to 1.14 dollars in the year ago.
All the major markets showed declined trend in the sales. In the Americas, total net sales declined 4% to 406 million dollars. In Asia-Pacific, total net sales declined 1% to 324 million dollars.
– These results reflected a continuation of strong growth in mainland China and mixed results in other markets. These sales results also reflected lower spending attributed to foreign tourists, the company says.
In Europe, total net sales declined 4% to 102 million dollars and comparable sales declined 7%. Other net sales of 26 million dollars were 17% above the previous year, as increased wholesale sales of diamonds more than offset a 17% decline in comparable sales in our stores in the UAE.
Company also said that the possible US China tariffs could increase the jewelry tariffs from its current level to a new level of 25 % on average. The company increased its quarterly dividend by 5 procent.
Tiffany´s stock (TIF) ended Friday in New York to 94,48 dollars, up 0,94 %, giving the market cap of the company to 11,47 billion dollars.