18% Rise in Tiffany & Co Q3 Net Sales

Net sales of $627.32 million in the third quarter were a 17.95 percent increase over last year, as Tiffany & Co witnessed growth in all its channels of distribution. 

Tiffany has stores and business-to-business direct selling operations in the U.S., stores and department store boutiques outside the U.S., and a strong direct marketing operation that includes Internet and catalog sales.

Comparable store sales in the U.S. increased 8 percent, while comparable international store sales increased 10 percent in the third quarter. U.S. net sales totaled $302.67 million, international net sales $270.85 million and direct marketing $31.37 million, growing 11.95 percent, 18 percent and 3.51 percent respectively.

Earnings from continuing operations rose to $153.79 million compared to $47.66 million in the prior year.

Current year earnings from continuing operations included a pre-tax gain of $105.05 million from the sale-leaseback of the land and building housing the Tiffany & Co. flagship store in Tokyo’s Ginza shopping district. The company received proceeds of $327.54 million. 

Other real estate deals included the sale of the building housing its flagship store in London for $148.63 million. 

Another big contribution to Tiffany’s bottom line included the sale of Little Switzerland for $32.87 million. The sale was completed in the third quarter.

Tiffany currently expects a 9-10 percent increase in 2007 U.S. comparable store sales and continues to expect a high single-digit percentage increase on a constant-exchange-rate basis in international retail comparable store sales.

It expects a 10 percent increase in direct marketing sales.