Like many luxury retailers, Tiffany & Co. is offsetting a
decrease in retail sales in the U.S. and Japan by building up it presence in emerging markets such as China and India. Tiffany's first quarter ended with a
12% increase in sales due to strong growth in Asia-Pacific and Europe. "Overall U.S. sales were from higher foreign spending," CEO Michael Kowalski said during the
conference call.
Like
Coach Inc., another American brand trying to build up an international presence, Tiffany plans to expand in Asia and also in Europe. The company plans to open 24 stores across the U.S., Asia-Pacific and Europe. Six of those stores will be in the U.S., four will be in Japan, two will be in the U.K., six in Europe, and the remainder in China and Asia-Pacific. "Hong Kong is our largest market, and we plan on generating exceptional sales growth," Kowalski said.
There have been
rumors that LVMH Group and Tiffany & Co. have been in talks about a possible deal that would boost Tiffany's presence in the international market and increase LVMH's portfolio in jewelry. There have also been rumors that Coach may be interested in acquiring or partnering with Tiffany. Coach just acquired its distributor in China, and LVMH has an presence and plans to
expand in Asia as well.
- Maria Woehr
Juergen Lasowski
And the winners are...
