Tiffany Q2 Net Earnings Rise 41%

Luxury jewelry retailer Tiffany & Co. reported a 41 percent rise in second quarter net earnings from continuing operations for the period ended July 31. Net sales rose 19 percent on strong comparative store sales.

Comparable store sales in the U.S. increased 17 percent and internationally 7 percent. The company recorded an after-tax charge of $23.5 million, or $0.17 per diluted share, related to the pending sale of its Little Switzerland business.

Net sales in the second quarter rose 19 percent to $662.5 million. In the six months ended July 31, net sales increased 18 percent to $1.258 billion. On a constant-exchange-rate basis, net sales rose 17 percent, and worldwide comparable store sales rose 11 percent.

In related news, Tiffany’s reported that it had sold the land and building in which its Tokyo flagship store is located, for the price of $328 million, entering into a long-term lease. This latest transaction is expected to result in a pretax gain of approximately $104 million.