By  on August 31, 2006

NEW YORK - Despite strong sales, Tiffany & Co. said Thursday that second-quarter earnings dropped because of a $6.6 million tax benefit in the previous year.

Results were also pulled down by softer sales in Japan as well as higher product costs. But the New York-based purveyor of fine jewelry and other luxury goods vowed that it would deliver a higher growth rate in the long term. Management said on a conference call with analysts that the company is on track to grow total square footage by 7 percent this year.

“Our ongoing plans for store openings and new product introductions sustain our confidence in Tiffany’s ability to achieve higher rates of growth over the long-term,” said Michael J. Kowalski, chairman and chief executive officer.

For the quarter ended July 31, net earnings fell to $41.1 million, or 29 cents a diluted share, from $50.5 million, or 35 cents, in the previous year on sales that climbed 9 percent to $574.9 million from $526.7 million.


For complete coverage, see tomorrow's issue of WWD.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus