Tiffany Tiffany New CEO: Will Show Six Strategies In The Future

Last year, Tiffany, a high-end jewellery brand (Tiffany) who was committed to reform, had a big fire because of the launch of the "furniture boutique series" products. The products such as sky wool, expensive knitted pins and so on, let netizens shout "poverty limits imagination".

However, after a series of reforms in brand image, product and store design, Tiffany still faces the challenge of profitability and changes in the consumption habits of the Millennials.

Tiffany Tiffany new CEO: will show six strategies in the future

According to the "women's Wear Daily" report, Tiffany announced the fourth quarter earnings data in 2017 showed net profit fell from $157 million 800 thousand to $61 million 900 thousand in the same period last year, but Tiffany said it had been affected by recent tax expenses and impairment expenses a year ago. If not considered, profits rose 15% to $208 million.

Among them, the fourth quarter sales increased by 9% to 1 billion 300 million US dollars, up 6% from the constant exchange rate, up 3% from the sales of the stores, and increased by 1% at a constant exchange rate, lower than the analyst's expectation of 2.8%. Net profit fell by 61% to 62 million dollars, and the gross profit margin was 63.7%.

According to Tiffany's financial report, sales of all jewellery series and designer jewelry all recorded an increase throughout the year, while wedding jewelry sales fell.

In this regard, analysts said that from the wedding jewelry sales fell data, Tiffany's top priority is to weaken the brand's marriage culture.

As for the consumption scenario, with the brand concept of engagement ring and wedding culture as the core, the millennial generation is more respectful of women's self reward and "spoil themselves", and the opportunity to buy luxury jewelry products will not only relate to the wedding, but may be any reason and any occasion.

In fact, Tiffany is now working hard to reform.

Alessandro Bogliolo, the group's new chief executive, said at the earnings conference that the brand is still in the "evolutionary stage". The millennial generation is the focus of attention at present. For this customer group, the group will continue to expand its brand influence, update its products and strengthen store display, and establish a full channel sales system.

To this end, the company's future investment in certain areas, such as technology, marketing, vision, digital and physical stores, will affect the group's pre tax profit growth in the short term.

Specifically, Alessandro Bogliolo indicates that Tiffany is concentrating on six major strategies, including expanding brand influence, launching new products, strengthening store display, establishing a full channel sales system, consolidating the leading position of brand in key markets, establishing efficient business models and strengthening team building.

Under the change, Tiffany is not a "helpless" fighter.

According to the fashion headline data, the fourth quarter of Tiffany can end sales for thirteenth consecutive quarters without growth, and sales trend is improving.

This media pointed out that after Tiffany experienced brand image, product and store design reform, performance began to pick up gradually.

Randal Konik, an analyst at Jefferies, also said that she still has confidence in Tiffany. The new management reform is necessary to reform the long-term growth of the group. Once the sales growth returns to normal, it will be reflected in the stock price.

The bank maintains Tiffany's target price of 125 US dollars and its "buy" rating.