Tiffany’s Posts Q1 Double Digit Profits, Sales Rise

Luxury jeweler Tiffany & Co today (Thursday) reported profit in the first quarter rose 12 percent to $40 million, driven by strong growth in the US as well as in most international markets.

Net sales for the quarter ending April 30, rose 15 percent to $457 million.

Sales at stores open at least a year rose 20 percent in the United States but were down 10 percent in Japan.

Tiffany said it expects second-quarter same-store sales to increase in the high single digits.

The company said it expects gross margins for the second quarter to decline due to costs related to a new distribution center, and it sees minimal gross margin improvement for the full year.

Says Michael J. Kowalski, chairman and CEO, “Total sales and earnings growth in the first quarter exceeded our expectations thanks to exceptionally strong US results. We are very encouraged with the way we have begun 2004.”

Specialty retail sales increased 11 percent to $21.7 million in the first quarter primarily due to sales growth in Little Switzerland stores.