Tiffany US and Europe sales weaken over Christmas

Worldwide net sales at Tiffany rose 7% to $952 million (£619 million) in the holiday period, which was said to be the result of double-digit sales growth in Asia-Pacific and Japan and smaller increases in the Americas and Europe. Following strong sales and earnings growth in the first three quarters of 2011, sales weakened in these regions over Christmas, which was said to be the result of restrained spending by consumers for fine jewellery.

On a constant-exchange-rate basis – excluding the effect of translating foreign-currency-denominated sales into US dollars – worldwide net sales rose 6% and comparable store sales increased 4%.

Among the results, net sales in Europe increased 1% to $117 million (£76 million). On a constant-exchange-rate basis, total sales increased 2% and comparable store sales declined 4%, reflecting modest sales growth in Continental Europe and lower sales in the UK. In comparison, the highest increase in net sales was in the Asia-Pacific region, where they increased by 19% to $165 million (£107 million). On a constant-exchange-rate basis, total sales increased 18% and comparable store sales increased 12%, due to growth in most countries.

Tiffany chairman and chief executive officer Michael Kowalski said: “After achieving very strong and better-than-expected sales and earnings growth in the first three quarters of 2011, sales weakened markedly in the United States and Europe during the holiday season, reflecting restrained spending by consumers for fine jewellery.”

He added: “We are in the preliminary stages of financial planning for 2012 and will provide more detailed guidance when we report our full year financial results in March. We remain confident of our ability to expand our worldwide presence, to serve the growing global demand for Tiffany & Co products and to achieve a solid rate of annual growth in sales and earnings in 2012 despite economic challenges.”

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