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Tiffany shines in Japan with Abenomics impact
June 03, 2013
Tiffany & Co reported better than expected first-quarter earnings in Japan. Japan's sales rose 2 percent to $145M, with earnings growth held back by the weakening yen. On a constant-exchange-rate basis, total sales rose 20 per cent aided by a surge in household spending in the country triggered by Abenomics, the prime minister's aggressive campaign to revive Japan's sluggish economy.
Japan's 20% sales growth exceeded expectations more than any other region. In the rest of the Asian-Pacific region, total sales increased 14% on a constant exchange-rate basis, due to sales growth in Greater China and most other countries. In Europe and Americas, total sales rose 8% and 6%, respectively.
The company said that engagement rings and high-priced jewelries sold well in Japan in the first-quarter. A spokesperson at the luxury jeweler attributed the increase in part to the economic stimulus measures introduced by the government of Prime Minister Shinzo Abe, known as Abenomics.
Japan is one of the largest markets for Tiffany which accounts for about 17 percent of the total sales of the jeweler, following Americas and Asian-Pacific region.
