Weak U.S. Market Tiffany Net Profit Fell 17% In The Third Quarter

The US luxury jewelry brand Tiffany, which recently completed its takeover bid, did not perform well in the third quarter. On the evening of December 5th, Tiffany announced its third quarter performance report. According to the report, the net profit of the group fell 17% to 78 million dollars in the three months to October 31st, and sales volume was 1 billion dollars, which was basically the same as last year. Tiffany group CEO Alessandro Bogliolo said the decline in net profit was due to higher tax rates, while strong sales growth in mainland China offset some of the weak sales in the US.

In addition to its third quarter results, Tiffany also released its 9 month performance report as of October 31st. According to the report, Tiffany sales fell by 2% to 3 billion 100 million dollars, and net profit dropped 11% to 340 million dollars.

From the performance of each country's performance, Tiffany's net sales in the third quarter of the United States dropped 4% to 423 million US dollars, and sales fell 4% in the third quarter. Tiffany says sales in most parts of the United States have declined due to a gradual decrease in consumption of foreign tourists and local consumers.

In the Asia Pacific region, the net sales volume of Tiffany in the third quarter remained unchanged, down 1% to 294 million yuan compared with the same period last year. The decline in sales in the Asia Pacific region is mainly due to the impact of foreign currency conversion. It is worth noting that the two digit growth in sales performance in mainland China in the third quarter and 9 months is mainly due to the increase in local consumer spending.

According to Japan's regional performance, Tiffany's net sales in the third quarter increased by 19% to $169 million. Tiffany management believes that as of the first quarter of October 1, 2019, Japan's strong sales growth was mainly due to the response of Japanese consumers to the increase in the consumption tax effective on that day.

Alessandro Bogliolo said that in the future Tiffany will continue to expand its brand influence and continue to introduce more new products to attract consumers, such as the recently launched Tiffany T series, men's series, the Tiffany Love perfume series and holiday activities. At the same time, Alessandro Bogliolo said that for the recent announcement of transactions with LVMH, Tiffany is looking forward to becoming a member of LVMH before approval of some procedures. In the future, Tiffany will also become a special luxury item.