The famous jewelry business Tiffany & Co. (NYSE:TIF) has lost much of its shine in that last couple of years, thanks to growing competition, low demand, and stores offering lower prices. Their sales figures and profitability has been falling as a result.
But finally, there is some good news for the business. Tiffany & Co. has posted their first sales rise in two years, thanks to more consumers shopping at the company stores in China and Japan. The upscale jewelry business has been seeing declining sales, particularly in the United States. To compensate the US loss, Tiffany & Co has been focusing overseas, and this seems to be paying off.
There are signs that the US market might also be improving for the business. In the latest quarter, Tiffany’s decline in the US has been the lowest.
Japanese shoppers seem to be turning things around for the business, both in their own country and the United States.
Tiffany’s Sales Are Close To $950 Million
Net sales have gone up by 1.2 percent to reach $949.3 million, which is more than what the analysts had predicted. They had said it would be around $920 million. Observers are saying that the 1 percent improvement is modest, but it’s still better than the consecutive quarters when the business kept posting poor numbers.
The market reacted positively to this news when the financial figures were announced on Tuesday. At one time, the stock was trading 8 percent high, the best in 15 months. But by the close of trading on Tuesday, Tiffany had shed some of these gains through profit taking. The stock closed 3.15 percent higher at $80.60.
The Struggles at Tiffany
It has been difficult for the business as many wealthy shoppers have turned towards cheaper brands. Many have opted for hipper brands as well such as the online jewelry store Blue Nile, and Pandora A/S (CPH:PNDORA) of Denmark.
Tiffany (NYSE:TIF) is trying to fight this trend by launching a new silver line where the items are priced at less than $500. The business has also been marketing their diamond engagement rings aggressively. It could be the right strategy as fashion jewelry has done well in the latest quarter.
In the meantime, there are fears that Tiffany’s sales might be affected because of the security restrictions and protests at Trump Tower in New York, where their flagship store is located. This store accounts for 10 percent of Tiffany’s sales.