Tiffany & Co. is on a roll.
The company posted its second consecutive quarter of stronger-than-expected earnings this morning—this one for the fiscal quarter ending July 31, 2018.
The global brand reported a 12 percent spike in worldwide net sales, which reached $1.1 billion, and an 8 percent rise in comparable sales. Net earnings ascended 26 percent to $145 million, or $1.17 per diluted share, from $115 million, or $0.92 per diluted share, a year ago. The healthy results have led management to increase its full-year earnings outlook.
In the fiscal statement, the company cited broad-based growth in worldwide sales, increases in gross margin, and lower effective tax rates as factors that contributed to the upswing.
All product categories showed growth. And while Tiffany doesn’t break down sales in each category, Tiffany CEO Alessandro Bogliolo said in the statement that sales of the Paper Flowers collection—artistic director Reed Krakoff’s first official collection for the brand—have experienced particularly strong growth. So much so, the company is moving toward global distribution of the collection, “and we believe our evolved brand message is gaining momentum,” added the CEO.
The brand will focus on product personalization, its high jewelry, the creation of a “whimsical” holiday campaign, and the unveiling in North America of Tiffany True, which the brand describes as “an innovative diamond ring concept.”
The company will, as budgeted, up its strategic investment spending for the remainder of the year to support longer-term growth.
That includes spending millions on the recently announced multiyear overhaul of Tiffany’s New York City flagship store, which we reported on earlier this month. The massive renovation will kick off next spring and wrap up in the fourth quarter of 2021.
“We believe that the thoughtful combination of making short- and long-range strategic investments is necessary to achieve the full growth potential of this legendary brand,” said Bogliolo.
Top: Styles from the Paper Flowers collection, which will be rolled out globally in the near future (courtesy of Tiffany & Co.)
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