Tiffany & Co.’s holiday sales were disappointing, management admitted, with overall net sales sinking 1 percent despite healthy demand for Tiffany T jewelry.
The strong sales for the heavily promoted gold fashion line “did not translate into broader sales momentum,” chairman and CEO Michael J. Kowalski lamented in a statement.
The muted results caused the company to lower its financial guidance, to $4.15–$4.20 per diluted share, compared with its previous forecast of $4.20–$4.30 per diluted share.
Overall worldwide net sales for the two-month holiday selling period fell 1 percent to $1.02 billion but increased 3 percent on a constant-exchange basis. Comps were flat with 2013.
The biggest problem, Kowalski said, is sales varied by region:
– Sales in the America were flat on a constant-exchange basis, with comps declining 1 percent.
– Asia-Pacific receipts leaped 10 percent on a constant-exchange-rate basis, led by growth in China and Singapore. Same-store numbers rose 6 percent.
– Japanese revenues sank 3 percent on a constant-exchange-rate basis and 16 percent in dollar terms. Comps tumbled 8 percent.
– European sales jumped 9 percent on a constant- exchange basis and 1 percent in dollar terms. Comps grew 4 percent.
– Wholesale diamond sales also increased.