Reed Krakoff

Tiffany & Co.’s revision under Reed Krakoff has been slow going — but more should be visible in the first half.

While named the jeweler’s chief artistic officer in January 2017, Krakoff’s first designs for the firm weren’t unveiled until November — and those were his concepts for its home collection, which he was first hired to make over in July 2016. The line was called “Everyday Objects” and received mixed reviews — with some media criticizing a tin can design cast in sterling silver for its $1,000 price tag.

Krakoff’s jewelry designs have yet to be revealed. A Tiffany spokesman noted they are due in stores in May.

While Krakoff’s approach to Tiffany has not yet been realized in full, the brand — which has struggled in the last decade to maintain momentum in the North American market — has already exhibited early signs of financial turnaround under new chief executive officer Alessandro Bogliolo and chairman Roger Farah.

For the third quarter, the jeweler’s net income rose 5 percent to $100 million, or 80 cents a diluted share, from $95 million, or 76 cents, a year earlier. Sales increased 3 percent to $976 million, although comparable-store sales slipped 1 percent. Comps were flat on a constant currency basis.

In October, Wells Fargo issued analysis that remarked upon Tiffany’s new home assortment: “One of the biggest initiatives this year comes from the Q4 launch of the home/accessories line designed by Reed Krakoff’s team, which can help reinvigorate a gifting business that used to be sizable many years ago (a mid-teens percent of sales) but has been significantly de-emphasized over the years (now a LSD percent of sales).

“With a dedicated floor in the [New York] flagship — opening in early-November — and more-limited assortments in the U.S. branch stores, management hopes that a broad assortment of non-jewelry product, such as barware, travel accessories, pet accessories, baby gifts, etc., will drive increased visitation and incremental revenues to stores….This will be key to [Tiffany] achieving their holiday goals, as Q4 will be a telling sign if there is an inflection story building into 2018,” Wells Fargo wrote.

In late November, with Tiffany share price then hitting around $92, a report by RBC Capital Markets projected growth for the jeweler. “We believe in-line Q3 earnings and sequential improvements in most regions are enough to give hope that upcoming catalysts could lead to upside over the next few quarters. We note the seven-times multiple expansion the stock already had in anticipation of improving trends (and keeping pace with luxury peers) as well as rising concerns around GMs, could limit material upside to the stock,” the report noted.

On Tuesday, Tiffany’s stock rebounded — reaching more than $106 a share, a sum not seen since December 2014.

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