Tiffany Enjoys a 21% Increase in Sales in Q3

(IDEX Online News) - Tiffany & Co. on Tuesday announced third quarter net sales increased 21 percent to $821.8 million. The company credited improved sales in all geographic regions.

Net earnings rose 63 percent to $89.7 million, reflecting a higher operating margin that benefited from sales leverage on fixed costs, the retailer said in a release.

Net earnings in the prior third quarter had been reduced for a nonrecurring expense. Excluding that item, net earnings in this third quarter were 52 percent above the prior year.

Tiffany raised its earnings forecast for fiscal 2011 to reflect the better-than-expected results.

Michael J. Kowalski, chairman and chief executive officer, said, "Increased sales in all regions contributed to the continuation of strong worldwide sales growth in the third quarter. We were also pleased to achieve an improved operating margin by leveraging the sales growth against fixed costs."

In the Americas region, largely the U.S., sales increased 17 percent to $387.7 million in the third quarter. Sales in the New York flagship store increased 24 percent due to strong sales to foreign tourists.

In the Asia-Pacific region, sales increased 44 percent to $183.2 million. On a constant-exchange-rate basis, total sales and comparable store sales rose 40 percent led by growth in the greater China region.

In Japan, sales increased 12 percent to $146.4 million while in Europe, sales rose 19 percent to $92.5 million in the third quarter.

In its’ outlook for the rest of the year, Tiffany forecasts worldwide net sales increasing by a high-teens percentage, which implies a low-teens percentage increase in the fourth quarter.