Tiffany&Co reports lower than expected financials yet pursues retail expansion
U.S. based jeweller Tiffany&Co said confirmed this week its businesses posted increases in fiscal fourth-quarter sales, although the company’s overall top line underperformed Wall Street expectations. Tiffany has reduced losses from $186m to $103m.
The luxury-jewelry brand’s results for the most recent quarter reflected its relative continuing strength amid a generally weak retail environment. In January, Tiffany said its holiday sales rose 4% on growth in all its regions, while other retailers saw tepid results. Overall, same-store sales rose 6%, excluding currency impacts, for the quarter.
Looking ahead, the company said it expects net sales to rise by high-single-digit percentage during the new fiscal year, reflecting sales growth in all of the company’s regions. For the quarter ended Jan. 31, Tiffany posted a loss of $103.6 million, or 81 cents a share, compared with a profit of $179.6 million, or $1.40 a share, a year earlier.
Despite the uncertain context, Tiffany&Co will open 13 new stores in 2014: 4 stores in the U.S., 5 in Asia Pacific, 2 in Japan and 3 in Europe, of which one in Moscow and one in Paris on Champs Elyssees, its largest flagship store outside the U.S.