Tiffany Asia Pacific Sales Growth

In January 12th, Tiffany, the world's second largest luxury jewelry brand, released its sales report for the holiday season as of December 31st last year. During the 11-12 months and two months of last year, Tiffany's global net sales amounted to $1 billion 20 million, down 1% from the same period in the previous year. The group announced a reduction in its annual sales forecast and made a preliminary plan for the new fiscal year.

Tiffany CEO Michael J. Kowalski "Sales during the holiday season are disappointing, and the performance of products in different regions and products is very different," he said.

From the regional point of view, sales in the Asia Pacific region have increased steadily, with a total sales volume of US $210 million. According to the constant exchange rate, it grew by 10% compared with the same period last year, and the same store sales increased by 6% over the same period last year. This is mainly due to the strong performance of the Chinese and Singapore markets. Japan's sales performance continued to be weak. Japan's macroeconomic policy had affected consumer enthusiasm. Total sales volume was $113 million, unchanged at the fixed exchange rate, down 8% from the same period last year, and the same store sales fell by 8%. The American mainland is Tiffany The world's largest market, with a total sales of $544 million, was unchanged at the same exchange rate as compared with the same period in 2013, while same store sales fell 1% year-on-year. The total sales volume of Europe was US $133 million, a year-on-year increase of 9% compared with the same month, and the same store sales increased by 4% over the same period. Other market In addition to Moscow, there has been a significant increase in total sales growth of 14% to $24 million.

Michael J. Kowalski believes that although the listing of Tiffany T series has brought strong sales growth to fashion metal products, the performance of other categories is not satisfactory. Last November, in order to maintain the brand's high-end market positioning, the company intends to continue to raise its price of gold and silver jewelry. This move has also brought about an increase in gross margin for the company. From the sales report of holiday consumption season, the market performance of traditional product lines is still dragging behind the overall sales performance except metal jewelry.

Faced with the lack of growth, Tiffany began to adjust its market share as early as last year. It is understood that the company intends to strengthen market publicity, increase sales expenditure, and plans to open in the 2014 fiscal year, the number of new stores to 10, including 4 in the United States, 2 in the Asia Pacific region, 2 in Japan, 1 in Europe and Russia, and closed 1 stores in the United States and UAE. According to the company's sales bulletin as at December 31, 2014, Tiffany has 296 stores in the world, 123 in the US, 73 in the Asia Pacific region, 56 in Japan and 38 in Europe. In the previous year, the number of stores in the world was 286, 121 in the United States, 69 in the Asia Pacific region, 54 in Japan and 37 in Europe. There are 4 new stores in the Asia Pacific region, which means that the Asia Pacific region is the only market where the number of stores is over planned. This confirms the importance of the Asia Pacific market, which benefited from the strong performance of China and Singapore, in the Tiffany market in the past 11-12 months, with a total sales growth of 10%.