National Jeweler Network

Financial Reporting

Tiffany raises guidance following ‘excellent’ Q1

By Michelle Graff

May 22, 2014

New York--First quarter sales were strong worldwide for Tiffany & Co., with same-store and total sales in the Americas increasing due to broad-based growth across the United States.

According to results released Wednesday by the New York-based retailer, same-store sales in the Americas rose 8 percent year-over-year in the first quarter ended April 30. Total sales were up 8 percent (9 percent on a constant exchange rate basis) to $439 million.  

Globally, Tiffany’s same-store sales increased 11 percent while total sales were up 13 percent (15 percent on a constant exchange rate basis), from $895.48 million to $1.01 billion. 

Net earnings increased 50 percent from $83.6 million to $125.6 million, while gross margin rose from 56.2 percent to 58.2 percent. 

“This is an excellent and encouraging start to the year,” said Tiffany Chairman and CEO Michael Kowalski, noting that the retailer experienced broad-based growth across all product categories. “Strength in fine and statement jewelry sales continued while sales of our new or expanded jewelry collections accelerated, led by our Atlas collection.” 

Tiffany raised its guidance for the fiscal year, predicting a high-single-digit increase in worldwide sales. 

The retailer said it plans to open 13 stores, including four in the Americas, and close four existing stores, including one in the Americas, this fiscal year.

The company closed one store in the United States in the first quarter, and opened four including a flagship on the Champs-Élysées in Paris. 

As of April 30, Tiffany had a total of 292 stores worldwide, including 121 in the Americas, compared with 275 stores, including 115 in the Americas, a year ago.