TIFFANY’S THIRD-QUARTER PROFITS JUMP 45%, FUELED BY HEALTHY SALES GROWTH
NEW YORK — Profits at Tiffany & Co. jumped 45 percent in the third quarter, ignited by robust sales growth in the U.S. and Japan. In the quarter ended Oct. 31, the retailer earned $4.7 million, or 30 cents a share, up from $3.3 million, or 21 cents, a year earlier. Earnings were slightly ahead of Wall Street’s mean estimate of 28 cents a share.
Sales climbed 18.8 percent to $160.1 million from $134.8 million. Top sellers included solitaire diamond rings and silver jewelry, a spokesman said.
U.S. sales rose 15 percent to $72.3 million in the quarter, with same-store sales ahead 12 percent. Tiffany cited strong sales growth in Tiffany’s New York flagship and branch stores.
International sales jumped 29 percent to $67 million, helped by a 22 percent hike in same-store sales in Japan. Direct-marketing sales rose 3 percent to $20.8 million.
In the nine months, earnings more than doubled to $10 million, or 63 cents a share, from $4.5 million, or 28 cents, before a charge a year earlier. After a $32.7 million charge to take over its Japan business, Tiffany showed a net loss of $28.3 million in the 1993 nine months.
In last year’s second quarter, Tiffany assumed management and marketing duties for 29 Tiffany boutiques previously run by Mitsukoshi Ltd. and purchased $115 million in inventory.
Sales gained 23.7 percent to $443.6 million from $358.5 million. U.S. sales rose 15 percent to $197.3 million and direct-marketing sales advanced 5 percent to $60.3 million. International sales rose 44 percent to $186 million, partly reflecting its realignment in Japan.
Tiffany has 82 units, including 18 in the U.S. It plans to open a store in Short Hills, N.J. in fall 1995, and one in White Plains, N.Y. in spring 1995.