Tiffany & Co. Beats Earnings on Sales Growth in U.S., Asia

Michael Teague |

Tiffany's Shares for Tiffany & Co. (TIF), the largest jeweler in the U.S., jumped over 4 percent on Tuesday to a 52-week high of $81.25 after the company’s first quarter earnings report indicated stronger than expected sales.

Sales at stores open longer than a year, otherwise known as comparable-store sales, were up 8 percent on an increase in demand for higher-end jewelry in both American and Japanese markets.

Stronger sales at the company’s flagship location in Manhattan, New York, which generates about one-twelfth of the company’s revenue, helped a 6 percent increase in sales growth in the Americas. Meanwhile, a two percent sales-increase in Japan, the company’s second-largest market, and the planned addition of 4 new locations to its already-existing 22 in China contributed to a 14 percent increase in sales in Asia.

For the first quarter of 2013, Tiffany & Co. reported profits of $83.6 million, or $0.65 per share on revenue of $895.4 million, against the prior year period during which the company netted $81.5 million, or $0.64 per share on revenue of $819.17 million. Excluding one-time fees, earnings came in at $0.70 per share, well ahead of expectations of $0.52 cents, while the company easily beat revenue projections of $855.1 million.

Not getting ahead of itself, however, the company remained with its previously stated full-year guidance, with 2013 profits expected in a range of $3.43 to $3.53 per share. The weak yen is one of Tiffany’s major obstacles at the moment, as Q1 sales in Japan would have grown some ten times as much as they did without the deflation that the country is currently attempting to fend off.

Also, the company cited weak sales of its less-expensive items. Almost one third of the company’s sales are generated from products under $500. Tiffany’s cheaper products are often made of silver, where sales were in decline during the first quarter. The company plans to release new and more exciting silver products throughout the remainder of the year, but will also continue its focus on higher-end jewelry. Last year the Tiffany & Co. sought to capture a larger share of the luxury market by devoting a whole section of its operations to wealthier clients via special events.

Tiffany & Co. has been on a sharp upward trajectory since the beginning of the year, with shares advancing 33.50 percent in 2013.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
CYS.P.B CYS Investments Inc. Preferred Series B 24.18 -0.07 -0.29 9,701
TIF Tiffany & Co. 72.83 -0.72 -0.98 706,370


Emerging Growth

Nano One Materials Corp.

Nano One Materials Corp is a technology company. The Company manufactures storage materials for lithium ion batteries.

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…


Pinterest is a visual discovery and planning tool. Users ("Pinners") use the site and apps to get ideas for their future, such as recipes, places to travel, and products to…