Tiffany & Co. Q3 Net Earnings Up 37% to $23.789 Million

Tiffany & Co. reported an 8 percent increase in net sales and a 37 percent rise in net earnings for its third quarter. Earnings growth benefited from a 5 percent increase in worldwide comparable store sales, a higher gross margin, and a lower effective tax rate.

Net earnings in the third quarter ended October 31, rose to $23.789 million, up 37 percent from $17.358 last year.

Net sales during the period increased to $500.105 million, up 8 percent from $461.152 in the prior year. On a constant-exchange-rate basis, which excludes currency effects from translating foreign-denominated sales into U.S. dollars, net sales increased 9 percent in the third quarter, with worldwide comparable store sales increasing 5 percent.

U.S. Retail sales increased 9 percent to $247,782,000 in the quarter; comparable store sales rose 7 percent due to a 12 percent growth in New York flagship store sales.

International sales were also strong, with a 7 percent increase to $204,287,000. On a constant-exchange-rate basis, sales rose 7 percent. Comparable store sales in Japan in the quarter were flat, while total retail sales in the country rose 5 percent.

Direct marketing sales increased 4 percent to $27,308,000.