Tiffany’s misses on same-store sales, forecast disappoints
Jeweller has been taking a number of steps to diversify its sources of revenue
A Tiffany store in Beverly Hills, California: the jewellery group has suffered several quarters of declining sales. File photograph: Lucy Nicholson/Reuters
Jeweller Tiffany missed analysts’ estimates for same-store sales in the fourth quarter and forecast a tepid full-year profit, indicating that its efforts to turn its business around are still gaining traction.
The results come as a surprise after Tiffany in January posted strong store sales for the holiday period and raised its full-year profit forecast.
The company’s shares fell as much as 7.5 per cent to a three-month low of $95 in morning trading on Friday.
Tiffany, which has suffered several quarters of declining sales, has been taking a number of steps to diversify its sources of revenue by introducing cheaper silver jewellery as well as everyday home items to appeal to a wider customer base.
Chief executive officer Alessandro Bogliolo said the investments were taking a toll on the company’s earnings.
‘Lot to do’
Former Bulgari executive Bogliolo, who took over as CEO in October, said that the company had a “lot to do” with its products outside jewellery.
Tiffany recently renovated its New York flagship store, showcasing its new home items collection and opening a “blue box” cafe – modelled after its famous packaging – in an effort to draw more visitors.