Tiffany Q1 Sales Jump 12% Led by U.S. Growth

U.S. luxury jewelry retailer Tiffany & Co reported a 12 percent increase in net sales in the first quarter ending April 30, led by 11 percent growth in the U.S. mostly due to an increase in per transaction amounts as well as by a higher number of transactions.

Comparable store sales rose 11 percent, due to growth of 11 percent in the New York flagship store and a geographically broad-based 11 percent increase in branch stores. The success of new stores opened in the past year also contributed to overall sales growth.

Overall, net sales in the first quarter rose 12 percent to $509.9 million compared with $456.9 million a year earlier.

International retail sales of $190.3 million in the first quarter were 3 percent higher than in the previous year.

Direct marketing sales in the first quarter rose 12 percent to $41.4 million. Combined Internet and catalog sales rose 14 percent and business gift sales increased 9 percent due to rises in the number of orders and in the amount spent per order.

Other sales rose 61 percent to $34.8 million. The increase was partly due to 18 percent sales growth in Little Switzerland stores. In addition, approximately two-thirds of the increase was due to the sale of rough diamonds determined, in the normal course of business, to be unsuitable for Tiffany's production.

Net earnings in the first quarter increased 9 percent to $40.1 million from $36.8 million.

Michael J. Kowalski, Chairman and Chief Executive Officer, said: "We are very pleased with the robust growth in our U.S. sales which compared with a very strong quarter last year as well as growth in many international markets. We believe this clearly signifies the enduring appeal of our classic products and demand for our latest introductions, as well as the favorable response to our new Celebration rings campaign.

"Sales in Japan remained below our expectations, but we will continue to focus our managerial, marketing and merchandising resources on that market."