National Jeweler Network

Financial Reporting

Tiffany’s comps in the Americas up only 1 percent

November 26, 2013

New York--Tiffany & Co. reported Tuesday that same-store sales in the Americas rose 1 percent in the third quarter, with the growth attributable to sales at the company’s flagship store in New York City. 

Totals sales in the Americas region rose 4 percent (5 percent on a constant-exchange-rate basis) year-over-year to $417 million in the third quarter ended Oct. 31.

Worldwide, Tiffany’s same-store sales were up 7 percent, with all regions recording sales growth. Total sales also climbed 7 percent (11 percent on a constant-exchange-rate basis) from $852.7 million to $911.5 million.

Net earnings were up 50 percent year-over-year from $63.2 million to $94.6 million.

Gross margin rose from 54.4 percent to 57 percent due to lower commodity costs and price increases instituted earlier in the year, though gains were offset by sales of more higher-priced, lower-margin products.

“We are very pleased with our overall results,” Chairman and CEO Michael Kowalski said in a company statement. “Worldwide sales growth in the quarter demonstrated the growing power of the Tiffany & Co. brand and the benefits of our expanding global presence.”

He said the company is seeing excellent response to its new Atlas collection, and continued growth in fine and statement jewelry, with particular strength in the yellow diamond collection.

Tiffany opened six stores in the third quarter, including locations in Paramus, N.J., Cleveland, West Edmonton, Canada and Curitiba, Brazil.

As of Oct. 31, the company operated a total of 283 stores globally, including 120 in the Americas. That is up from 272 stores, including 113 in the Americas, at this time last year.

For the fiscal year ended Jan. 31, Tiffany said it expects net sales to increase by a mid-single-digit percentage (a high single-digit percentage on a constant-exchange-rate basis).