Holiday sales decline 21 percent for Tiffany

Majors

Save

E-mail

Holiday sales decline 21 percent for Tiffany

January 14, 2009

Similar Stories | Topics

STORIES

Tiffany's 3Q sales drop

Tiffany reports strong 1Q, watch-distribution plans

Tiffany's 1Q sales up, but U.S. market weak

Tiffany remains 'cautious' on U.S. market

Tourist-spot jewelers adapt to fewer visitors

TOPICS

Business | Company Activities and Information | Corporate Reporting | Earnings and Loss Announcements | Earnings and Losses

New York--"Cautious" consumers resulted in a 21 percent drop in worldwide holiday sales for normally solid Tiffany and Co., and it's a trend the company expects to continue well into the new year.

According to results released on Wednesday by the New York-based jewelry retailer, worldwide net sales for the 2008 November-December holiday selling season totaled $687.4 million, down from $867.3 million a year ago, with sales declines most significant in Tiffany's U.S. stores.

In the United States, comparable-store sales declined 35 percent, with similar decreases reported both in the New York flagship store and in branch locations. Combined Internet and catalog U.S. sales also were down, falling 21 percent.

In the Americas, the company reported sales of $385.9 million, a decline of 30 percent from a year ago.

In Canada, sales in local currencies increased, but in Latin America, sales declined.

Sales for the period also decreased 4 percent in Europe to $79.2 million and 2 percent to $216 million for the Asia-Pacific region.

"Deteriorating global economic conditions were clearly reflected in cautious spending by Tiffany customers across the entire range of jewelry categories and price points. We believe these conditions will continue well into 2009," Tiffany Chairman and CEO Michael J. Kowalski said in a media release. "Nevertheless, we are committed to maintaining healthy profitability and are reviewing all elements of our cost structure."

He added that because the holiday season represents the largest portion of the company's fourth-quarter sales, he does not expect an uptick in sales for the quarter ending Jan. 31; instead, he expects net earnings will decline for the period.

For the full year, Kowalski said the company anticipates net sales of about $2.85 billion and net earnings of $2.25-$2.30 per diluted share.

In the meantime, the company is in the midst of offering an early retirement program and taking other measures to reduce costs in the face of the decline in demand for luxury goods.

"While we are taking a cautious approach to planning our business for 2009, we will also continue to prudently pursue growth opportunities to further strengthen Tiffany's global presence and increase sales over the longer term," Kowalski said.

Save

E-mail

Majors

Zale slapped with shareholder class-action suit

A shareholders' class-action lawsuit has been filed against Zale Corp., its chief executive officer and three former executives, claiming the Irving, Texas-based, 1,931-store chain deliberately deceived investors. Read More

JCOC: 11 percent to purchase jewelry this holiday

Penney's 'Doghouse' lives to bark another season

More Majors

More Like This

Tiffany's 3Q sales drop

November 26, 2008 | National Jeweler Network

Tiffany reports strong 1Q, watch-distribution plans

May 31, 2007 | National Jeweler Network

Tiffany's 1Q sales up, but U.S. market weak

May 30, 2008 | National Jeweler Network

Tiffany remains 'cautious' on U.S. market

March 24, 2008 | National Jeweler Network

Tourist-spot jewelers adapt to fewer visitors

March 12, 2009 | National Jeweler Network

TOPICS

Business | Company Activities and Information | Corporate Reporting | Earnings and Loss Announcements | Earnings and Losses

Design Portfolio

BROWSE

Video

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.