Tiffany & Co. rocks third quarter and Xceligent is valued at zero

Mensch:
Noun. A decent, upright, mature and responsible person.

Schlemiel:
Noun, slang. An awkward, clumsy, or unlucky person whose endeavors tend to fail. A loser.

Mensch of the Week: Tiffany & Co.

New York’s favorite jeweler, Tiffany & Co, surprises everyone with its third-quarter sales. Net income rose to $100.2 million, compared to last year’s $95.1 million. Total net sales grew 3% to $976.2 million above estimates of $958.3 million.

Alessandro Bogolio, CEO as of October, believes this success is just the beginning. Tiffany’s multi-faceted approach to improving customer engagement is what ultimately led to the boosted sales. Utilizing young celebrities, an updated website interface, and more designer collections have made the brand gain popularity. Plus, the newfound popularity is not limited to U.S. sales.

Asia-Pacific sales rose 15% to $283 million, countering the 8% fall in Japan’s expected sales. The main goal of the jeweler’s brand is to remain timeless and they continue to do this by trying to attract younger demographics. In March, Lady Gaga was featured in their Super Bowl advertisement to show that Tiffany’s is a brand for more than elderly women and rich socialites.

However, focusing on a younger demographic could have negative effects. Although they are drawing in young people, it’s mostly online because online shopping remains most popular for this age group. One way Tiffany’s is trying to entice shoppers into stores is with their new Blue Box Cafe.

Have a case of the mean reds? Now you can really have breakfast at Tiffany’s. The New York City flagship store, which is infamous for its multiple levels and iconic feature in Breakfast at Tiffany’s, opened Blue Box Cafe on November 8th on the fourth floor. The incorporation of food and beverage into retail stores has been taken up by a few retailers over the past few years in hopes foot traffic will raise sales. For Tiffany’s, it seems to be working.

Schlemiel of the Week: Xceligent

Daily Mail and General Trust‘s real estate data subsidiary Xceligent is valued at zero. Where do we begin with this one? Not only is Xceligent in the midst of a trial and counter lawsuit with competitor CoStar, now they are a loss-making business.

As mentioned in one of our previous articles, Xceligent’s CEO Doug Curry stepped down in October. Jody Vanarsdale is now acting CEO.  Xceligent’s pitiful performance comes as no surprise during their court case with CoStar. Their credibility is dropping drastically since claims of blatant copyright were made during the trial.

After attempting an expansion to New York, Xceligent unfortunately took a huge hit. DMGT is now working to review its assets and options to reverse this painful value. DMGT’s Chief Financial Officer Tim Collier wanted to expand into larger markets like New York but is now in charge of the cleanup process. Tim Collier tells Bisnow,

“Quite candidly the revenues were disappointing and that suggests a longer and more challenging path for Xceligent to profitability”

Most recently they took on an impairment charge of $56 million. Their trial with CoStar is still ongoing but I am sure this is not the last time Xceligent will hold this title.

 

This Post Has One Comment
  1. I nominate Tiffanys for the next Schlemiel award. I waited in line for 1.5 hours in the freezing cold last Friday to get a seat for breakfast only to be told that the restaurant was booked two weeks in advance. The website said nothing about reservations! The fact that I traveled from Philadelphia to NYC made no difference. Definitely a Schlemiel!

Comments are closed.