National Jeweler Network

Financial Reporting

Tiffany reports comps up, strong sales in Q2

August 28, 2014

New York--Tiffany & Co. reported Wednesday that same-store sales in the Americas were up 8 percent year-over-year in the company’s second quarter ended July 31, bolstered by strong performances across most product categories.

Total sales rose 10 percent on a constant exchange rate basis to $484 million in the region during the three-month period, reflecting broad-based growth across most of the region.

Meanwhile, worldwide, same-store sales were up 3 percent during the second quarter, while net sales increased by 7 percent to $933 million, largely due to growth in the Americas and the Asia-Pacific regions.

In the first half of the year, comps in the Americas climbed 8 percent, and total sales in the region were up 9 percent to $922 million. Global comps rose 7 percent year-over-year during the six months, and total sales increased 11 percent to $2 billion.

During the second quarter, Tiffany’s opened one store the U.S., which is located in Aventura, Fla. As of July 31, the company operates 293 stores, 122 of which are in the Americas, compared with 277 stores in the same period last year, with 116 of those being on the Americas.

For the full fiscal year, Tiffany plans to open four new stores and close one existing store in the Americas. It also expects worldwide net sales to increase by high-single-digit percentage.

“These healthy second quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions,” said CEO Michael Kowalski. “In addition, an improved gross margin was an important contributor to the earnings growth. We were also pleased with solid performance across most product categories, ranging from the success of perennial classics in fine, statement and engagement jewelry to our newest Atlas collection, and we are excited about the current debut of our new Tiffany T jewelry collection.”