What to Expect from Tiffany’s Sales in Fiscal 3Q17



What do analysts project?

Wall Street analysts expect Tiffany & Co. (TIF) to report sales of $1.0 billion in fiscal 3Q17, which reflects a marginal improvement of 0.6% YoY (year-over-year). Low tourist spending in the US (SPY) and weather-related headwinds could impact the company’s top-line growth rate. However, increased wholesale diamond sales and continued demand in China (FXI) are expected to drive the company’s sales.

In comparison, Signet Jewelers’ (SIG) sales fell 2.5% in fiscal 3Q18, which reflected a lower number of transactions, weather-related issues, and internal factors like the credit portfolio transition.

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What could impact Tiffany’s sales?

Tiffany’s sales are expected to benefit from the square footage expansion and growth in its e-commerce business. New design launches in the fashion jewelry category, supported by enhanced marketing, are expected to drive its top-line growth.

The company announced that it plans to open five or six stores in the Asia-Pacific region during the current fiscal year. The new stores will expand its distribution network and augment its sales growth. Tiffany expanded its bridal segment in Japan with a new bridal boutique near its key Ginza store in Tokyo, which is witnessing favorable trends.

As currency risk subsides, the company is projected to witness improving trends in its European sales. Consumer spending is expected to remain high in China, which should support its top-line performance. However, continued challenges in the US are expected to remain a drag. The company expects its sales to improve in the low single-digits in fiscal 2017.


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