Tiffany & Co said its worldwide net sales reached a record US$4.4 billion in 2018 due to growth in all regions, reflecting higher spending attributed to local customers and foreign tourists.
Net earnings in the 12 months ended January 31, 2019 amounting to US$586 million also benefitted from a lower effective tax rate.
Alessandro Bogliolo, CEO of Tiffany, commented, “Our team is proud of its accomplishments in 2018 that contributed to net sales surpassing levels not seen since 2014. Softer trends in the second half of the year reflected, in part, what we believe were external challenges and uncertainties.”
He added, “Most important, we are still in the early stages of a journey to achieve long-term sales, margin and earnings growth for this legendary brand, and are making progress across our six key strategic priorities: Amplifying an evolved brand message; renewing our product offerings and enhancing in-store presentations; delivering an exciting omnichannel customer experience; strengthening our competitive position and leading in key markets; cultivating a more efficient operating model; and inspiring an aligned and agile organisation to win. I continue to strongly believe that Tiffany has vast global growth opportunities and we look forward to realising our full potential in the future.”
By region, sales in the US rose 5 percent due to higher spending by local customers and foreign tourists. In the Asia Pacific, sales increased 13 percent due to growth in Greater China and other countries in the region. Sales in Japan were up 8 percent while Europe registered a 3 percent rise in sales.
During the year, Tiffany opened 10 company-operated stores, closed four and relocated 10 stores. At January 31, 2019, the company operated 321 stores (124 in the US, 90 in Asia Pacific, 55 in Japan, 47 in Europe, and five in the UAE), versus 315 stores a year ago.