Iconic jewellery retailer Tiffany & Co notched up profit and sales above expectations during its second quarter today, with business bolstered by its wholesale arm.
Overall sales worldwide increased three per cent to $960m (£750m) in the second quarter, but comparable sales stores dropped two per cent.
Earnings rose nine per cent to $115m (£89.8m).
The strong performance in the period built on the previous quarter, with net earnings for the first half rising eight per cent to $200m.
Tiffany’s shares rose more than three percent in early trading before sliding back down to the previous day’s price.
Why it’s interesting
Tiffany’s noted that it had seen growth in areas like fashion and designer jewellery, while others lagged behind. High-end jewellery played a bigger role in sales as consumers favoured the higher-margin products.
The company also said there had been stronger uptake in its wholesale business, with this sector powering a 74 per cent increase in ‘other’ sales in the Asia-Pacific region during the second quarter.
Growth was sluggish in the American business, where sales rose one per cent in the second quarter but declined one per cent in the first half.
What the company said
Michael J. Kowalski, Chairman of the Board and Interim Chief Executive Officer, said, “While net earnings rose in the first half, we remain determined to drive comparable store sales growth and stronger, sustainable earnings growth through a continued focus on product design innovation in jewellery and luxury accessories, further optimization of our store base, more impactful marketing communications and highly effective customer engagement both in-store and online.”