Dive Brief:
- Tiffany's earnings soared in the first quarter of 2018, delivering "strong and better-than-expected results," the company said in a press release. Net earnings rose 53%, in part because of the retailer's priority of delivering an "exciting" omnichannel experience for customers, CEO Alessandro Bogliolo said.
- The jewelry retailer said costs of raw materials such as metal input and rough diamonds are down, helping to further boost net earnings.
- The company recently launched a new fine jewelry collection of platinum and diamonds called Paper Flowers, along with a marketing campaign known as "Believe in Dreams," both of which Tiffany's CEO said contributed to its net sales increase of 15%.
Dive Insight:
Coupled with a new product line and marketing campaign, Tiffany's emphasis on positive customer experiences through all channels has resulted in a big win for the jewelry retailer. Sales, earnings and gross margins increased for Tiffany in its first quarter of 2018.
In the digital space, Tiffany CEO Alessandro Bogliolo said the company operates its own e-commerce sites in 13 countries. In addition, Tiffany sells some of its collections through two online designer fashion platforms, Farfetch and Net-A-Porter, reaching more than 40 countries.
"We believe this will bring Tiffany & Co closer to additional customers who are highly fashion conscious and shop online," Bogliolo said in a recent company earnings call.
But in boosting online presence, Tiffany hasn't forgotten about improving its physical stores. One of the retailer's strategic priorities is to enhance in-store presentation — something many retailers are testing through product showroom-style stores. Bogliolo said Tiffany is working to make its brick-and-mortar stores "more engaging and more fun and more and more modern."
The integration of the physical stores with online sales, Bogliolo said, creates a "seamless" omnichannel experience. Most recently with its new collection Paper Flowers, the retailer launched the products physically in its flagship store on Fifth Avenue in New York City.
"But we had amplification on digital," Bogliolo said. "So, this is becoming really a ... new normal for Tiffany to leverage digital in all ways."
