Shortly after the release of its Tiffany T collection, Tiffany & Co released higher-than-expected quarterly results. For industry experts, this suggests that the luxury brand’s bid to push higher-margin fashion jewellery has helped it to win over shoppers.
In recent years, Tiffany has struggled to raise sales, particularly in the Americas. Now, this demographic of shoppers is spending less on accessories, and has seen a greater shift toward cheap and trendy brands.
“The fashion category is where we have enjoyed the most relative success, so I think that speaks at least directionally of some success in appealing to millennials,” says Tiffany’s Chairman and interim Chief Executive Michael Kowalski.
Sales of jewellery priced under $500 went up during the quarter. As such, the iconic retailer plans to increase its offerings in this category, as well as increase its e-commerce capabilities.
With luxury retailers like Tiffany’s heading into the mid-end market, you may want to reconsider what’s in your stock. By ensuring that you have all your markets covered, you’ll set yourself up for success.
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