Tiffany Reports Recovery in China Sales

Tiffany & Co

Tiffany & Co said its jewelry business is rebounding in China after the coronavirus pandemic and its merger with French luxury retailer LVMH is clearing regulatory hurdles.

The U.S. jewelry maker said Tuesday in an earnings release that its same-store sales were down about 44% in the fiscal first quarter as the pandemic shuttered shopping malls and stores across the globe. Yet CEO Alessandro Bogliolo pointed to China as “indicative that a robust recovery is underway.”

TIF swung to a net loss of $64.6 million, or 53 cents a share, from earnings of $125 million, or $1.03 a share, a year ago. Revenue fell 45% to $555.5 million.

Analysts were expecting Tiffany to earn three cents a share on sales of $701 million, but the coronavirus pandemic has made comparisons with estimates difficult to make.

The company has 324 stores worldwide. About 70% of the stores were closed as of April 30, when the fiscal first quarter ended.

Tiffany said its jewelry sales dropped off significantly in the three-month period. Engagement jewelry declined by nearly 50%, more than any other category.

The company said its focus on expanding business in China, investing in its websites and adding new jewelry products prior to the pandemic have made the company more resilient.

In China, same-store sales were down about 85% and 15% during the first and second months of the quarter, but have picked up again in April and May.

Shares galloped $2.53, or 2.1%, to $124.71 early Tuesday.

Source: marketwatch

Tiffany, Macy’s Among Retailers Closing US Stores

Tiffany US Retail

 A growing number of US retailers, including Tiffany & Co., are temporarily shuttering all locations across North America in an effort to stem the coronavirus spread.

“Effective immediately, we’re temporarily closing all Tiffany stores in the US and Canada, as well as many other locations globally, to protect our teams, clients and communities,” the jeweler said in an Instagram post Tuesday. “Now more than ever it is time for us to take care of the ones we love.”

Macy’s closed all its stores nationwide as of close of business Tuesday, including its Bloomingdale’s department-store chain. However, all its brands will continue to operate via online sites and mobile apps, it noted. 

“The health and safety of our customers, colleagues and communities is our utmost priority,” Macy’s CEO Jeff Gennette said Tuesday. “We will work with government and health officials to assess when we will reopen.”

J.C. Penney followed suit Wednesday, shutting all stores and business offices in the country, noting operations were currently slated to resume April 2.

Nordstrom has also announced it will suspend operations at all its North American stores, yet the company has limited the closure to a two-week period, it said. During that time it will offer curbside pickup for online orders. Meanwhile, Saks department store has shut its New York and Philadelphia locations, according to the Los Angeles Times.

Meanwhile, Pandora will not only close its US-based stores, but will shut locations in Italy, Spain, Germany and France, among others. It has also encouraged its franchisees and multi-branded partners in affected markets to cease operations voluntarily.

Signet Jewelers has not declared official plans to close any stores, but said it would follow the advice of the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC).

“Nothing is more important than the safety of our employees and customers,” David Bouffard, Signet’s vice president of corporate affairs, told Rapaport News Wednesday.

Signet shares were down 35% since start of trading on Wednesday, March 11, while Macy’s dropped 29% and Tiffany slipped 11%.

Source: Diamonds.net

Tiffany Provides Glimpse into Future Store Design

Tiffany

The brand’s innovative ‘style studio’ in London may be a preview of what to expect on Fifth Avenue.

With Tiffany & Co. refurbishing its flagship store on New York’s Fifth Avenue, there is a buzz of speculation on how the retailer plans to make the shop more interactive and appealing to millennials, as it has vowed to do. What people may not know, however, is that Tiffany has already made a similar move in London, opening a new, modern store that strikes a different tone than the one many consumers associate with the brand.

It may also provide a glimpse of how the famous Manhattan branch will ultimately shape up, since we’ll have to wait until the end of 2021 to see that one in its completed form.

A tale of two UK stores

The jeweler’s main London store, on upmarket Old Bond Street in the city’s retail-focused West End, couldn’t be more classic Tiffany. Its hanging sign, flagpole and clock help it blend in with the Cartier and Gucci shops around it, though the frontage is perhaps slightly more daring and appealing than some of its luxury neighbors’ stuffy window displays.

A mile to the east, Tiffany’s new “style studio” in the more informal Covent Garden neighborhood is a different type of space entirely. Situated in a trendy spot for tourists, it’s a light, enticing attraction for the millennial visitor, with large undecorated windows and a fresh interior that does away with the intimidating atmosphere luxury retailers can sometimes create.

Beyond jewelry

The room’s imaginative decor includes striking wall designs and simple tables that make browsing easy and fun. There are few or no engagement rings on display; the store mainly stocks fashion jewelry and other items, including products from Tiffany’s home-and-accessories line. There’s also a space in the back for events. On the day this reporter visited, that area had free ice cream on offer for a limited time, and customers seemed interested in what they were seeing.

Indeed, Tiffany calls the new location a “style studio” because it’s more than a jewelry store. A Tiffany-blue vending machine dispenses fragrances. Customers can draw images on a flat screen and then watch while workers engrave those designs onto jewelry or emboss them in leather. There’s also a Starbucks-like feel: Visitors can perch on stools at tables, charging their phones and laptops while they wait for their friends to turn up. An assistant said the store would serve coffee if a customer were sitting around long enough.

It’s unlikely to be an absolute blueprint for Tiffany’s Manhattan store of the future: That branch gets a fair chunk of its revenue from engagement rings and other high-end jewelry, which may require a different atmosphere. Yet Tiffany has said innovation will be central to the transformation of its flagship as it seeks to create a “dramatic new experience for customers.” It would be surprising if none of the Covent Garden space’s features ended up on Fifth Avenue.

Source:diamonds.net