Luxury retailer Tiffany, (NYSE:TIF) once famous for its “please return to Tiffany” necklaces and bracelets, is struggling to appeal to Millennial consumers.
The brand cites Millennials’ shopping habits and desire for new products and updates for falling sales along with a weaker tourism industry.
In the last quarter, Tiffany had a weak performance but other luxury brands have seen a strengthening industry this summer. Both European luxury conglomerates LVMH and Kering reported strong performance in jewelry.
Analysts are predicting 72 cents in earnings per share (EPS) on $934.74 million in revenue during the company’s most recent quarter. In a research note, Goldman Sachs (NYSE:GS) issued a neutral rating, saying it’s “too early” to support Tiffany despite the improved growth in the luxury industry. Goldman Sachs also notes Tiffany is pushing more of its silver jewelry which “has the potential to drive units but has yet to really move the needle on the business and likely needs some time to work through.”
Recently, Tiffany rolled out custom Snapchat filters at its locations to appeal to younger customers. It is the first luxury jewelry brand to have a custom Snapchat lens. But critics have said while a Snapchat filter might attract young, tech savvy customers, it has the potential to cheapen the brand and alienate existing customers. The brand already has an active Instagram (NASDAQ:FB) account that shows celebrities wearing Tiffany pieces, and inspirational quotes.
In an effort to attract a younger demographic, the brand also plans to update its products more frequently citing Millennials’ habit of fast fashion. Instead of purchasing timeless pieces, Millennials are more interested in shopping for what’s trendy and what’s in style now.
In a new form for Tiffany, the brand has started using celebrity endorsements for the first time, including actresses Lupita Nyong’o and Elle Fanning.
Tiffany reports its second quarter earnings Thursday morning before the opening bell.