Tiffany & Co., reporting results for the year ended January 31, 2017, said worldwide net sales rose 1 percent to $900 million due to growth in Asia-Pacific and an increase in the sale of diamonds on a wholesale basis. However, comparable store sales were 3 percent below the prior year.

On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into US dollars, worldwide net sales increased by 2 percent due to factors noted above, as well as sales growth in Europe, and comparable store sales declined by 2 percent.

Management’s outlook for the fiscal year ending January 31, 2018 sees worldwide net sales increasing over the prior year by a low-single-digit percentage as reported and on a constant-exchange-rate basis.

In the Americas, total sales of $392 million were 3 percent lower than the prior year and comparable store sales declined 4 percent. In the Asia-Pacific region, total sales of $257 million were 8 percent above the prior year, while comparable store sales declined 3 percent. Management attributed total sales growth to increased wholesale sales and the effect of stores opened in the past year, while comparable store sales were affected by strong growth in mainland China and varying degrees of softness in other markets.

In Japan, total sales of $128 million were 2 percent below the prior year, and comparable store sales declined 1 percent. Management attributed the sales declines to lower spending by Chinese tourists.

In Europe, total sales declined 3 percent to $94 million and comparable store sales also declined 3 percent. Performance was generally soft in continental Europe, while management attributed sales growth in the United Kingdom on a constant-exchange-rate basis to spending by local customers and foreign tourists.

Other sales in total rose 32 percent to $28 million due to an increase in wholesale sales of diamonds.

Tiffany did not open any Company-operated stores in the first quarter and closed three. At April 30, 2017, the Company operated 310 stores (124 in the Americas, 84 in Asia-Pacific, 54 in Japan, 43 in Europe, and five in the UAE), versus 308 stores a year ago (124 in the Americas, 81 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE).

Company Chairman and interim CEO Michael Kowalski said, “While these results modestly exceeded our near-term expectations, we are focused on executing long-term strategies to achieve stronger and sustainable performance through product introductions, optimisation of our store base, effective marketing communications and the delivery of experiences that resonate with our customers. In so doing, we believe Tiffany & Co. is well-positioned to generate an attractive total shareholder return over the long-term.”

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