If you’ve been following sites like Business Insider and Bloomberg you’ve seen Tiffany and Company making headlines in the last week. First with the Costco win and now with their second quarter reporting.
Both are reporting, Tiffany and Company has shown a loss in the last 6 of 7 quarters. Up for hot debate over this decline are millennials. Outlets are reporting that they are bargain shoppers and not willing to pay big money on jewelry and other luxury items.
Millennials, also known as Generation Y, are the demographic cohort following Generation X. There are no precise dates for when this cohort starts or ends, however many typically use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years. This means I fall in the “millennial” demographic. This is strange to me because a lot of what we read in the news about this generation doesn’t pertain to me. Many say they have no interest in getting married, buying a home, or owning a car. I am married (have been since I was 27), I own a house and a car. Obviously I live in Maine and not NYC so a car is kind of a necessity. However, I have always dreamed of owning my own home and being able to decorate it and grow a family so when I read millennials have no interest in this I think well that is BS.
For this second quarter Tiffany earnings were 92 cents a share which topped analysts’ average 86-cent projection.
According to Bloomberg, “The results reflect Tiffany’s strategy to win back customers, including younger shoppers, by renovating stores and offering new designs, such as the HardWear Collection promoted by Lady Gaga. This particular article also claims Tiffany and Company is making headway with millennials who seek fashion jewelry while forgoing the treasures of the Audrey Hepburn generation: wedding and engagement rings.
So here is what I have to say about this, I LOVE the HardWear Collection. I purchased a ring from it and my husband bought me a pair of earrings but I also still LOVE the timeless and iconic pieces of the Audrey Hepburn era. This might be because my diamond, wedding bands, and my husband’s band all came from here. I think there is room for more edgier and fashion forward pieces while still honoring the classy and elegant pieces Tiffany is known for. One of the MANY reasons I love this brand so much is because of the timeless pieces, most of the purchases I make today I will still be able to wear in another decade which isn’t true for some of the fashion forward pieces we see now.
So what gives? What is your take on this? Am I in the minority when it comes to millennials? After all I am a terrible bargain shopper, I prefer to save up and buy one expensive item as opposed to many less expensive items.
Also, how do you feel about the Tiffany Hardware Collection? Love it? Hate it? Please share.
Here are a few links: