Tiffany & Co. looks to be on the upswing financially.
The jewelry company reported unexpectedly high quarterly profits and sales this morning.
Net sales ascended three percent to $959.7 million in the second quarter that ended July 31; analysts had estimated net sales of $930.3 million. And the company’s net income rose to $115 million, up from $105.7 in the same quarter last year.
The Japanese market, which makes up around 15 percent of Tiffany’s total revenue, was especially strong for the company. In Japan, store comparable sales rose 3 percent this past quarter.
Comp sales in North America, which is Tiffany’s largest market, fell 1 percent. In Europe, total sales of $114 million in the quarter were 3 percent above the prior year, and sales of $208 million in the first half were equal to the prior year; comparable store sales declined 2 percent in both periods.
In a conference call following the release of the results, director of investor relations Mark Aaron said that TIffany was pleased with an increase in e-commerce sales in North America. Its New York flagship has “returned to a relatively normal flow of customer traffic” following a post-election disruption, he said.
During the quarter, the retailer saw good results from its Tiffany HardWear, Tiffany T, and 1837 collections, as well as “strong broad-based growth” from its Elsa Peretti and Paloma Picasso lines.
High fine and solitaire jewelry were soft, however, and engagement jewelry and wedding bands underperformed. Its watch business is progressing, Aaron added.
Additional reporting by Rob Bates.
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