Tiffany & Co. Third Quarter US Sales Up 16%

Tiffany & Co. reports today 18% growth in its worldwide net sales in the third quarter.  Net earnings were 20% lower than the prior year, due to a tax benefit they received last year.

Net sales rose to $430.123 million versus $366.033 million last year, credited to sales growth in most of Tiffany's domestic and international markets. Worldwide, on a constant-exchange-rate basis that excludes the effect of translating local-currency-denominated sales into US dollars, net sales increased 15% and comparable store sales rose 10%.

However net earnings in the quarter fell 20% to $28 million, compared with $35 million in 2002.  The company says the decline in net earnings resulted from a non-recurring tax benefit of $8 million in the third quarter of 2002 - the recognition of the cumulative US tax benefit provided by the Extraterritorial Income Exclusion Act.

Year-to-date net sales increased 17% to $1.268, billion compared to $1.087 billion during the first nine months of last year.  On a constant-exchange-rate basis, net sales rose 14%.

Michael J. Kowalski, Chairman and CEO, says today about the financial results, “We are delighted with the dramatically improving sales trends we've seen in the US this year, characterized by extraordinary growth in diamond jewelry sales, as well as strength in a number of international markets. And we are excited with the continued exceptional results in our e-commerce business.”

“However,” he adds, “our business in Japan has performed below our expectations, largely due to especially weak sales of silver jewelry, although we believe product introductions will contribute to improved trends.”