Tiffany & Co has seen a Christmas profit boost with worldwide net sales increasing by 8% to $1.05bn in the quarter ended December 31 2017.
These results have led the company to increase its net earnings guidance. This does not include effects that are expected to result from recent revisions to the US tax code.
The jewellery brand saw growth across regions and product categories, and comparable store sales rose 5%. Worldwide net sales rose 6% with comparable store sales up 3%.
In the Americas, total sales increased 7% to $516m and comparable store sales rose 6%. Management noted varying degrees of growth across most of the US, Canada and Latin America with higher spending attributed primarily to local customers.
In Europe, total sales rose 14% to $136m, reflecting the opening of new stores - some of which management believes had negative effects on existing store sales in those markets. Comparable store sales still rose 2%.
The company remained cautious for 2018 and said that the preceding negative comparable store sales trend can only be reversed on a sustainable basis by continuing to evolve the product offerings and customer experience.
It also admitted it needed to step up certain strategic spending in the business, all of which is reflected in the preliminary 2018 plans and earnings outlook.
Alessandro Bogliolo, Chief Executive Officer, said, "We were pleased with the improvement in sales during the holiday period across regions and categories, both instore and online. While our major fashion jewelry collections continued to perform well, customers were equally excited about our fine jewelry, our watches and our new home and accessories collection. Some exceptional high jewelry creations further contributed to the sales performance.
"This recent return to growth in worldwide comparable store sales, fueled by a substantial improvement in the Americas and Asia Pacific, is consistent with our commitment to generate solid and sustainable growth in sales, operating margin and earnings that is at least comparable to our industry peers over the long-term."