Tiffany Weathers Slow 4Q for Record 2018

Tiffany London

Tiffany & Co. reported record annual sales in 2018, despite the challenging economic environment that caused a slowdown in the fourth quarter.

“In 2018…net sales surpassed levels not seen since 2014,” said Tiffany CEO Alessandro Bogliolo. “Softer trends in the second half of the year reflected, in part, what we believe were external challenges and uncertainties.”

Group revenue grew 7% to $4.4 billion, the company said Friday. Sales increased 13% to $1.2 billion in the Asia-Pacific region, while revenue in the Americas climbed 5% to $2 billion. Sales in Japan rose 8% to $643 million, and proceeds in Europe went up 3% to $504 million.

The jewelry retailer’s new marketing strategy, including its “Believe in Love, Believe in Dreams” and holiday campaigns, buoyed sales, Bogliolo noted in a conference call with analysts last week, transcribed by Seeking Alpha.

Worldwide comparable-store sales — at branches open for at least a year — rose 4% at constant currency rates.

Profit for the year jumped 58% to $586 million, its highest in a decade, according to Rapaport records. Earnings were boosted by a lower income-tax rate, which included a $16 million benefit related to the enactment of the 2017 US Tax Cuts and Jobs Act, Tiffany explained.

During the fourth quarter ending January 31, 2019, global sales declined 1% to $1.3 billion, due to softer demand from local customers and foreign tourists. The lower spending was attributable to market volatility and external uncertainties, the company observed.

Profit for the three-month period more than tripled to $205 million versus $62 million a year ago, also as a result of the lower tax payment.

The company expects net sales for 2019 to increase by a low-single-digit percentage over 2018, as the lower foreign-tourist spending it encountered in the fourth quarter continues into the new fiscal year, it said. Higher expenses relating to its six-point program to stimulate growth will also negatively impact earnings, Tiffany noted.

Among its 2019 initiatives, the jeweler is strengthening its message on diamonds via a campaign on social media, accelerating its product renewals and launches, as well as delivering a more exciting omni-channel experience, Bogliolo explained in the analyst call.

Tiffany will begin selling engagement rings on its US website, he added. Phone orders were previously the only outlet for purchasing outside its store locations. Additionally, the company will launch an e-commerce site in China later this year.

Tiffany’s stock rose 3.1% on Friday following the results.

Source: Diamonds.net

Tiffany & Co. Will Now Share Where Its Diamonds Come From

Tiffany and Co

The luxury jeweler is leading a new era of diamond transparency with its Diamond Source Initiative.

Tiffany Diamonds
Tiffany Diamonds

Always wanted to know where your diamonds come from? Now you’ll be able to with Tiffany & Co.’s new Diamond Source Initiative that champions an era of diamond transparency.

In an industry first, Tiffany will be the only global luxury jeweler to provide consumers with geographic sourcing information specific to their diamond as the brand believes that knowing provenance is critical to ensuring responsible sourcing.

“Tiffany & Co. has long been committed to diamond traceability and going above and beyond industry norms to promote the protection of the environment and human rights,” said Anisa Kamadoli Costa, chief sustainability officer, Tiffany & Co. “A transparent journey of responsible sourcing reflects the many positive and far-reaching benefits along every step of the diamond supply chain.”

Building upon 20 years of investment in responsible sourcing, the Tiffany Diamond Source Initiative will allow the brand to trace each of its individually registered diamonds (0.18 carats and larger) by a unique serial number that’s etched by a laser and invisible to the naked eye.

The initiative has already been rolled out and today, provenance information is displayed alongside a selection of diamond rings in Tiffany stores around the world. In addition, geographic sourcing information for all individually registered diamonds will be made available to consumers via Tiffany & Co. sales professionals and customer service.

Tiffany's diamonds
Tiffany’s diamonds

By the end of March 2019, Tiffany Diamond Certificates will also include provenance for individually sourced diamonds and in 2020, the brand will begin sharing the craftsman journey (such as cutting and polishing workshop location) of its diamonds as well.

Source: lofficielusa.com

Costco to Pay Tiffany $19M

Tate and Co

Costco Wholesale Corporation ordered to pay Tiffany & Co. at least $19.35 million in damages after selling counterfeit diamond rings bearing the iconic jeweler’s name, a US federal judge ordered last week.

Costco to pay $11.1 million plus interest plus an addition to the $8.25 million in punitive damages that a jury awarded last October for Tiffany’s lost profit from the trademark infringement a US District Judge Laura Taylor Swain Said.

Evidence at the trial proved Costco had frequently reference Tiffany as a benchmark for style and quality, and placed rings labeled with the standalone word “Tiffany” next to branded luxury items.

The ruling sends a clear message to others who infringe the Tiffany mark.