Tiffany net earnings sparkle in Q2
New York – Tiffany & Co. grew its net earnings 16% during the second quarter of fiscal 2013, and also increased net sales and same-store sales. Net earnings increased 16% to $107 million, from $92 million in the same quarter a year earlier.
In addition, worldwide net sales rose 4% to $926 million while same-store sales grew 5% due to growth in most regions. In the Americas region, total sales increased 2% to $444 million in the second quarter and total sales in the Asia-Pacific region rose 20% to $208 million. The negative impact of currency translation due to a weakened yen caused total sales to decline 14% to $136 million in Japan, but without currency impact total sales in Japan would have risen 7%.
In addition, total sales in Europe rose 11% to $111 million in the second quarter and other sales increased 33% to $26 million, primarily reflecting the conversion in July 2012 of five stores in the United Arab Emirates from independently operated to company-operated.
"Total sales growth met our objective due to solid performance in most regions, and with particular strength in our statement and fine jewelry product categories,” said Michael J. Kowalski, chairman and CEO of Tiffany. “We were pleased with the results of our efforts to improve gross margin which, combined with well-controlled expenses, yielded a solid increase in operating margin."
Looking ahead, Tiffany sees the addition of a net of 14 company-operated stores. This includes opening six stores in the Americas, seven in Asia-Pacific and three in Europe, and closing one each in Asia-Pacific and Japan.