Tiffany & Co. reported another weak quarter, with sales and earnings both falling due to the strong U.S. dollar and a decrease in Japanese sales.
In its first quarter for fiscal 2015 (ended April 30), net sales slid 5 percent to $962 million, and earnings declined 17 percent to $105 million. Both slides had been forecast and came in above expectations. (Tiffany had anticipated a 10 percent drop in sales and 30 percent drop in profits.)
Strong sellers included fashion gold jewelry, statement jewelry, and its new Tiffany T collection. The company continues to see weakness in silver jewelry priced at less than $500.
On the minus side, Japan recorded an 18 percent drop in total sales and 24 percent drop in comps. The company explained that was due to tough comparisons, since last year’s first quarter sales surged 30 percent, as consumers bought ahead of the rise in Japan’s consumption tax.
The strong U.S. dollar also hurt results, including sales to tourists visiting the United States. The company noted that if sales are calculated on a constant exchange basis, they fell only one percent, and without Japan, they rose one percent.
In a statement, CEO Frederic Cumenal said: “Our plans this year include expanding existing jewelry collections with new designs and opening stores in a number of important markets, all intended to further enhance Tiffany’s position as a leading global luxury brand.”