Tiffany Holiday Sales Gain as Customers Snap Up $450 Rulers
(Bloomberg) -- Tiffany & Co. posted a rebound in its holiday sales, helped by a new home and accessories collection that included $90 black pencil holders, $275 silver shaving brushes and $450 rulers.
Same-store sales, a closely watched benchmark, rose 3 percent in the final two months of 2017, the New York-based retailer said Wednesday. Tiffany had reported a decline of 1 percent in the previous year on that basis.
Tiffany put its holiday hopes on a new set of luxury home-decor items, which became a hit with shoppers. Several of the items, such as the pencil holders and rulers, sold out on the company’s website. Some of the highest-priced products are still available, including a $9,000 sterling-silver ball of yarn and a $10,000 bird’s nest with three porcelain eggs in Tiffany blue.
“Our holiday-period results confirm that the Tiffany & Co. brand is strong, and we are excited about our numerous long-term global opportunities,” Chief Executive Officer Alessandro Bogliolo said in a statement.
The company also says it expects annual sales to increase by about 4 percent. It had previously projected growth in the low single digits.
After a multiyear sales slump, Tiffany hired Bogliolo as CEO in July to revitalize the business. A veteran of Italian fashion label Diesel and rival jeweler Bulgari, Bogliolo set out to revamp Tiffany’s jewelry lines and lure younger shoppers to the 181-year-old retailer.
Tiffany reported strong sales growth across various jewelry segments, from the cheaper fashion items to its opulent high jewelry lines, while engagement rings and wedding bands didn’t perform as well. Bogliolo also cited strength in watches and home goods.
Shares rose as much as 1.2 percent to $108.84. They had gained 3.5 percent this year through Tuesday’s close.
The home-accessories collection, dubbed Everyday Objects, was fashion designer Reed Krakoff’s first attempt to enliven design at Tiffany since he was hired last year. As chief artistic officer, Krakoff oversees design for not only products, but e-commerce, stores and marketing as well. His first jewelry collections for Tiffany are expected to be unveiled later this year.
The previous year, the frenzy at Trump Tower -- neighbor to Tiffany’s Fifth Avenue flagship store -- ate into holiday sales. Now that the president is in Washington full-time, post-election traffic disruptions have dissipated.
Annually, earnings will increase by a double-digit percentage over the previous year’s $3.55 a share, Tiffany said. In the coming year, the jeweler expects sales to grow by a percentage in the mid-single digits.
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