Shares of Tiffany & Co. Rise by 20% On Better Than Expected Results

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Today, the shares in Tiffany & Co, a jeweller, rose as it beat the expectations of analysts to report a huge net increase amounting to 15 percent to its worldwide sales during the first quarter.

The results of the company sent its shares up by 20 percent as Tiffany reported its biggest increase in same-store sales in the past four years.

Worldwide, the sales stood at $1bn, while its earnings increased by 53 percent from the figure amounting to $93m to $142m during the previous year.

The sales in the biggest market of the company in the Americas were particularly strong, increasing by nine percent to $425m.

However, the growth that was led by China in Asia also pushed the earnings of the company up, as sales increased by 28 percent to $329m.

The overall same-store sales increased by seven percent on a constant currency basis, surpassing the estimates of analyst of 2.7 percent.

Recently, Tiffany has overhauled its product lines, adding cheaper items in an attempt to compete with the Blue Nile and Pandora.

The said change was put in place to attract millennial shoppers back into their stores instead of settling for cheaper alternatives online.

The company also introduced new products such as pocket diaries, mirrors, and paper clips, to appeal to a wider range of customers.

The chief executive of Tiffany, Alessandro Bogliolo, stated: “We are particularly encouraged by the breadth of sales growth across most regions and all product categories.”

He added: “Most importantly, however, we remain focused on achieving sustainable growth in comparable sales, operating margin and earnings by pursuing and investing in the six strategic priorities we put forward in March: amplifying an evolved brand message; renewing our product offerings and enhancing in-store presentation; delivering an exciting omnichannel customer experience; strengthening our competitive position and leading in key markets; cultivating a more efficient operating model; and Inspiring an aligned and agile organisation to win.”