The luxury jeweller's financial results have topped analysts’ expectations
Tiffany jewellery demand remains strong
Posted December 02, 2013 | By Emily Mobbs • Former Editor
Tiffany & Co has increased sales by 27 per cent in the Asia-Pacific
region to $261 million, while the company’s overall latest financial
results have exceeded analysts’ expectations, indicating that the luxury
sector still appears to be buoyant.
The retailer achieved a 50 per cent increase in net earnings to US$95 million (AU$104 m) for the third quarter, ended 31 October 2013.
The positive result was largely attributed to a seven per cent rise in worldwide sales to US$911 million (AU$999 m) and a higher operating margin.
According to multiple media reports, analysts on average were expecting worldwide sales to be US$889.5 million (AU$976.4 m).
The jewellery retailer’s full-year forecast has been increased as a result.
“We are very pleased with our overall results. Worldwide sales growth in the quarter demonstrated the growing power of the Tiffany & Co brand and the benefits of our expanding global presence,” Tiffany chairman and CEO, Michael Kowalski, said.
“Operating earnings rose faster than sales, reflecting favorable product cost trends and ongoing well-controlled expenses,” he explained.
Kowalski added that the retailer experienced a good response to its expanded fashion jewellery designs, which was highlighted by the re-launch of the Atlas Collection, as well as continued demand for fine and statement jewellery, particularly its yellow diamond collection.
Region breakdown
Sales in the Asia-Pacific region increased by 27 per cent to US$238 million (AU$261 m) in the third quarter and 20 per cent to US$670 million (AU$734 m) in the year-to-date.
The Americas region achieved a four per cent rise in revenue to US$417 million (AU$457 m) and a four per cent increase to US$1.3 billion (AU$1.4 b) in the year-to-date.
In Europe, sales rose seven per cent to US$104 million (AU$114 m) in the third quarter and 8 per cent to US$309 million (AU$339 m) in the year-to-date.
Tiffany opened six stores in the period, and as at 31 October 2013, operated 283 stores worldwide. It had 272 stores in the same period last year.
Tiffany operates jewellery stores and manufactures products through its subsidiary corporations in the Americas, Asia-Pacific, Japan, Europe and the United Arab Emirates.