Tiffany´s sales one billion dollars during the first quarter

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.

Business Lifestyle

Basel2018 – LVMH pleased with the selling

Yleiskuva

This year Baselworld 2018, the leading  global luxury watch and jewellery trade show,  was special for many reasons. First this was a show case for many companies after the lagging sales after a couple of years. Secondly, this was also a year with many new product launches and industry integrations.

The world´s leading luxury company, LVMH and its Watch Division are very pleased with the trade show. – This Baselworld has been the best ever – we were sold out after three days, says the President of the Watch Division and CEO of Tag Heuer Jean-Claude Biver.

This division of the LVMH Group consists of 6 different houses and its sales were 3,8 billion euros last year. They have also 405 own stores globally. Brands like Tag Heuer, Hublot, Bulgari and Dior are part of this division. The organic growth was 12 % last year and the profit in this division was 458 million euros, + 12 %.

This is also in line with other luxury company announcements lately.  For example Tiffany & Co, released its last year figures. The group´s sales was up 4 % to 4,2 billion dollars. The growth accelerated during the last quarter and global sales rose by 9 % to 1,3 billion dollars.

Some of the new highligths was also the Swarovski Atelier. In the below picture  the company is revealing its new elements with fine jewellery.

The two models are wearing moon stones and rose gold from the company collection called Pasqualebruni. It is an Italian family owned company.

And the last picture is about Porsche Design and its history of car integration. Acording to the company, Porsche Design follows a clear design philosophy: to optimize function. The company has launched a new Monobloc Actuator 24H – this titanium watch has got a new form and for example has the two-time-zone mechanism.

 

SwarovksiMallitPorsche

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Luxury goods sales increased after UK´ s Brexit

 

Luxury goods sales have showed positive trend after the UK´s Brexit. According to national statistic and Swiss Watch Industry the luxury watch export to the UK increased by over 13 % in July. The main reason has been the weak sterling. According to the industry leaders, Britain is now the fastest growing major market for Rolex watches.

Also the world largest luxury goods maker the French LVMH (MC:FP) Group showed sales above the analyst estimates during the summer. The stock price of this industry leader has increased by 9,4 % on year.

The US jewelry company Tiffany ( (TIF:US) reported second quarter profit above the market estimates. The Italian fashion company Prada (PRDSF:US)  announced increased investments in e-commerce for the year 2017, but the company also made statements that Prada will retrun to growth in sales and earnings next year.

The British SUV maker Aston Martin announced that it will be moving its business core also to consumer products like Hermes and trying to appeal also more female customers.

In general the Luxury goods and apparel industry will be moving more towards e-commerce globally and the consumers have also noticed the tax-free shopping centers in the global airports. The sales of luxury goods at the airports have also increased by nearly 30 %  according to Global Blue.

 

 

 

 

 

Business Lifestyle