30% Jump in Tiffany & Co. Q2 Net Sales

Tiffany's sales in Asia-Pacific jumped by 55% in the second quarter thanks strong growth in China

(IDEX Online News) – Tiffany & Co. posted a 30 percent increase in net sales to $872.7 million in the second quarter ended July 31, despite rising precious metals costs and diamond prices. Comparable store sales rose 22 percent and net earnings jumped 33 percent to $90 million.

"We are extremely pleased by these results which confirm the growing global appeal of Tiffany's product offerings. In addition, we have been able to absorb precious metal and gemstone cost increases while improving our gross and operating margins," said Chairman and CEO Michael J. Kowalski.

Excluding expenses related to the relocation of Tiffany's New York headquarters staff, net earnings rose 58 percent in the quarter.

In the Americas, sales rose 25 percent to $438.2 million in the second quarter while in the Asia-Pacific region sales increased 55 percent to $173.2 million due to growth in most countries with the largest increase in the greater China region.

In Japan, sales rose 21 percent to $142.5 million in the second quarter and in Europe, sales increased 32 percent to $101.3 million.

The company noted a decline in wholesale sales of rough diamonds.

"Despite continuing economic uncertainty, our strong first half performance gives us ample reason to remain confident about our prospects for the balance of the year," Kowalski said. "We are encouraged that total worldwide sales growth in the third quarter-to-date is continuing to exceed our expectations due to noteworthy strength in the Americas, Asia-Pacific and Japan, demonstrating, once again, the attraction of the Tiffany & Co. brand."

In its outlook for the entire year, Tiffany said it expects a high-teens percentage increase in worldwide net sales and a net earnings increase of 25 percent - 28 percent.