Be warned: Gaga song references ahead.
Investors weren’t Dancing in Circles with reports that sales at high end jeweller Tiffany have continued to fall, despite a high profile partnership with Lady Gaga. Shares dropped 5% on the news.
Gaga was brought in to help the company reach out to a more youthful demographic. Tiffany began this strategy last year by launching ranges aimed specifically at millennials. It’s trying to remain relevant.
The company has blamed a drop in spending by tourists and locals, as well as a strong dollar. And it hasn’t been helped by its flagship store being on Fifth Avenue in New York City, right next to Trump Tower. Being so close to the protest shrine has caused sales at the location to drop and it’s said to have cost businesses in the vicinity $40m in lost revenue.
There’s hope though.
Renovated stores are coming back online and the holiday season is usually a strong sales period for the company. And net profit did increase slightly.
Also, the CEO’s removal at the start of the year shows the firm is clearly aware of the need to seek a new corporate direction.
Clearly though, Tiffany requires a John Wayne style leader to turn this ship around.