Day: August 29, 2018

Tiffany: + 25.8% profit and renew the NY flagship

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The jeweler Tiffany stores the second quarter with profits of $ 144.7 million, an increase of 25.8% compared to the same period of 2017.

In the three months ended July 31, revenues amounted to 1.08 billion dollars, an increase of 12%. The biggest growth concerns the Asia-Pacific, the second most important market, which recorded a + 28%. In Japan, Tiffany scored a + 11% while in the Americas (first market) the increase in sales was 8%. Europe is at the bottom with a 5% increase (-1% in comparable stores).

In the quarter, earnings per share were $ 1.17, while analysts expected $ 1.01 and a turnover of 1.04 billion.

The listed company in New York has revised upward the earnings estimates for the fiscal year end (January 31, 2019), which now rose from 4.5-4.7 dollars per share to 4.65-4.8 dollars . The forecast is based on a hypothesis of revenue growth at a rate between 5% and 9%.

Commenting on the results, CEO Alessandro Bogliolo recalled that Tiffany is preparing to renovate the iconic New York flagship building, on the corner of 57th Street and Fifth Avenue, open since 1940. In granite and limestone, with influences Art Déco and steel doors, is characterized by a bronze sculpture depicting Atlas carrying a watch on the shoulders (in the picture).

Work to create a new luxury shopping experience for brand loyalists should start in the spring of 2019 and finish in the fourth quarter of 2021.

During the renewal, Tiffany will temporarily expand the retail area in the adjacent space, formerly Niketown (6 East 57th street). The planned capital expenditure is equal to a percentage between 1% and 2% of annual revenues for three years, from the fiscal year that begins on February 1, 2019 (approximately 250 million dollars, assuming revenues in line with last year exercise, amounting to $ 4.2 billion).

Kathy Kiefer