A 75.6 percent drop in fourth-quarter earnings and tepid sales outlook notwithstanding, Tiffany & Co. intends to stay on the sidelines of the current promotional furor running through the jewelry market.
“While we believe our sales were negatively affected by the rampant discounting of some other jewelers and high-end competitors, we did and will continue with our full-price philosophy in order to maintain appropriate margins and, very importantly, to maintain the integrity of the Tiffany & Co. brand,” said executive vice president and chief financial officer James Fernandez on the company earnings call Monday morning.
Pressured by the economic slowdown, Tiffany said it has focused and continues to focus on reducing costs and launching products to navigate the turbulent economic waters.
Cost cuts directly impacted Tiffany’s bottom line during the fourth quarter, when about 600 of 800 eligible employees in the U.S. accepted an early retirement package and the company opted to shutter its 16-store Iridesse pearl jewelry chain. The moves will reduce worldwide staff by about 10 percent and lead to pretax savings of about $60 million this year, but they also generated charges that subtracted 60 cents a share from earnings.
As a result, net income for the period ended Jan. 31 was $31.1 million, or 25 cents a diluted share, versus $127.4 million, or 96 cents a share, a year earlier. Excluding charges, earnings totaled 85 cents, 5 cents higher than the analyst consensus estimate listed by Yahoo Finance.
The better-than-expected result helped to catapult Tiffany’s share $3.14, or 15.5 percent, to $23.37 as the major indices shot up on word of the new Treasury Department plan for buying up toxic assets. (For more on the stock market, see page 14.)
Sales tumbled 20.1 percent to $841.2 million from $1.05 billion, in the year-ago quarter.
“Right now, the overall retail jewelry industry is under enormous stress. The industry is competitively fragmented,” said chairman and chief executive officer Michael Kowalski on Monday’s call. “We faced an unprecedented environment with profound challenges, but also with promising opportunities for Tiffany.”
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)