Tiffany & Co. is gaining some sales traction, but not in retail.
The jeweler posted global sales for the second quarter of $306 million, a 3 percent increase over the same quarter last year, on net earnings of $115 million, a 9 percent jump.
Tiffany pointed to an increase in wholesale sales of diamonds, particularly in the Pacific region, as well as an improving e-commerce business as cause for the “modest net sales increases,” but comparable store sales overall fell 2 percent.
This is the company’s seventh consecutive quarter of comp sales declines. Comp sales fell in the Americas by 1 percent, by 7 percent in Asia-Pacific and by 2 percent in Europe. The declines were in line with Wall Street’s expectations.
Tiffany opened three stores in the first half of the year and closed four.
“While net earnings rose in the first half, we remain determined to drive comparable-store sales growth and stronger, sustainable earnings growth through a continued focus on product design innovation in jewelry and luxury accessories, further optimization of our store base, more impactful marketing communications and highly effective customer engagement both in-store and online,” Michael J. Kowalski, chairman and interim chief executive officer, said.
Kowalski added that under the leadership of newly appointed ceo Alessandro Bogliolo, he believes the company will “realize the potential of our extraordinary global brand.”
As for the rest of the year, Tiffany still expects global net sales and earnings to grow in the low-single-digits. The company also expects to increase its square footage by 2 percent.