Tiffany & Co. (NYSE: TIF) announced its sales for the “holiday period”, the two months ended December 31, 2016. The overall sales were slightly above that of last year, contributed by the growth in Asia-Pacific and Japan. However, sales of the Americas and Europe dropped.
In the statement, the company said that the worldwide net sales increased from $961 million last year to the $966 million in 2016, and comparable store sales dropped 2%. Total sales of the Asia-Pacific region rose 7% to $200 million, and comparable store sales decreased 4%. Retail sales in China and wholesale sales in Korea grew a lot, however, other market in this region did not perform well. In Japan, total sales increased 16% to $143 million, and comparable sales rose 21%.
Compared to the increase in Asia-Pacific region and Japan, sales of the Americas and Europe was below the previous estimates. Total sales and comparable store sales of the Americas decreased 4% compared to the same period last year, with total sales reaching $483 million. According to the company, the lower sales results was due to the lower customer spending, and the 14% drop at the flagship store on Fifth Avenue, which was partly caused by post-election traffic disruptions.
“These overall holiday period sales results were somewhat lower than we had anticipated, but we continue to benefit from a favorable gross margin and prudent expense management,” Frederic Cumenal, the chief executive officer of Tiffany, said in the statement on Tuesday.
“Although we do not anticipate any significant improvement in 2017 to the macroeconomic challenges that we faced this year, we continue to focus on our initiatives to enhance our stores and our customers' experience, and to add newness to our product assortment, while maintaining effective marketing communications and a well-developed supply chain,” he added.
Tiffany also announced separately that Reed Krakoff will be its chief artistic offer on February 1. Krakoff was a create collaborator of the company in 2016, and he will design Tiffany brand jewelry and luxury accessories.