Tiffany Posts Falling Revenues as Sales Fall in All Regions

(IDEX Online News) – Signet Jewelers Limited, the world's largest retailer of diamond jewelry, said that same-store sales and revenues fell in its fiscal year 2017 second quarter which ended on July 30.

Same store sales dropped by 2.3% on the year-earlier period, while total sales declined by 2.6% to $1.4 billion.

The jeweler reported that total sales at constant exchange rates were decreased by 1.3%.

The firm's integration with Zale Jewelers continues to progress well, the company said, adding that it was "on track to deliver cumulative synergies of $158 million to $175 million by end of this fiscal year and $225 million to $250 million by end of next fiscal year". Signet also said that Leonard Green & Partners has invested $625 million in the firm.

Signet Jewelers CEO Mark Light said, “We are disappointed by our Q2 results and market conditions have been challenging particularly in the energy-dependent regions. This has contributed to a downward revision in our annual guidance. We achieved some important wins in the second quarter. Select diamond fashion jewelry, bracelets, and earrings sold well.

"We saw success in a variety of selling channels including outlets, kiosks, and on-line due to improvements in our consumer websites and mobile sites. The Zale integration is running well and synergies remain on target. We remain confident in the medium and long-term prospects of our business."

Tiffany Posts Falling Revenues as Sales Fall in All Regions

Upscale jeweler Tiffany & Co. posted revenues for the second quarter that came in below analysts' estimates – at $932 million compared with the consensus estimate of $934.74 million.

In the Americas, total sales of $434 million in the second quarter and $837 million in the first half were both 9% below last year, with declines of 9% and 10%, respectively, in comparable store sales. On a constant-exchange-rate basis, total sales and comparable store sales declined 8% and 9%, respectively, in both the second quarter and first half. Management attributed the declines to lower spending by U.S. customers as well as by Chinese and other foreign tourists.

In the Asia-Pacific region, total sales of $230 million in the second quarter and $469 million in the first half were 6% and 7%, respectively, lower than the prior year, and comparable store sales declined 12% and 13%, respectively. On a constant-exchange-rate basis, total sales and comparable store sales declined 3% and 9%, respectively, in the second quarter and 4% and 11%, respectively, in the first half. Sales growth in China and Korea was offset by a continuation of significant declines in Hong Kong and more moderate declines in most other markets.

In Japan, total sales increased 10% to $138 million in the second quarter and rose 9% to $269 million in the first half due to comparable store sales growth of 13% and 12%, respectively. However, on a constant-exchange-rate basis, total sales and comparable store sales declined 5% and 3%, respectively, in the second quarter and declined 2% and rose 1%, respectively, in the first half. Management noted lower spending by Chinese tourists in both periods.

In Europe, total sales declined 12% to $111 million in the second quarter and 11% to $208 million in the first half, due to respective declines of 17% and 16% in comparable store sales. On a constant-exchange-rate basis, total sales and comparable store sales declined 8% and 13%, respectively, in the second quarter and 7% and 13%, respectively, in the first half. Lower sales in continental Europe were attributed by management to weak demand by foreign tourists and local customers, in contrast to better performance in the United Kingdom.