Tiffany First Quarter Sales, Profit Decline

Net sales in the first quarter by luxury jeweler Tiffany & Co. declined 22 percent to $523.1 million. On a constant-exchange-rate basis, worldwide net sales declined 18 percent, with comparable store sales declining 21 percent.

The company said the financial results were consistent with its expectations for the quarter and reaffirmed its outlook for the full year.

Net earnings in the first quarter were $24.3 million, a 62.27 percent drop compared with $64.4 million in the prior year.

“Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations,” said Michael J. Kowalski, Tiffany chairman and CEO.

Net sales in the Americas declined 31 percent to $259 million. Sales declined 42 percent in the New York flagship store.

Combined Internet and catalog sales, usually strong U.S. sales channels, declined 17 percent.

In the Asia-Pacific region, sales declined 9 percent to $201.4 million while in Europe sales of $55.6 million were 8 percent below the prior year.

In his 2009 outlook, Kowalski disclosed that almost a month into the second quarter the company is seeing a “lessening in the rate of year-over-year total sales decline.”