Tiffany & Co. said Tuesday that its worldwide net sales during the two-month holiday period ended December 31, 2010, rose 11 percent over the prior year to $888.5 million. On a constant-exchange-rate basis (which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars) worldwide net sales increased 10 percent and comparable store sales rose 8 percent. All regions reported strong sales increases with double-digit sales growth in Asia and Europe.
Because of the higher-than-expected growth in sales during the holiday period, the management of the luxury jewelry company has increased its global sales outlook to $3.1 billion for the fiscal year ending January 31, 2011.
Net sales highlights by region:
* Sales in the Americas, which includes the U.S., Canada and Latin/South America, increased 9 percent to $484.8 million. On a constant-exchange-rate basis, sales rose 9 percent and comparable store sales increased 7 percent (comparable Americas' branch store sales rose 8 percent and sales in the New York flagship store increased 3 percent). Internet and catalog sales in the Americas increased 8 percent.
* Sales in Japan increased 11 percent to $142.5 million. On a constant-exchange-rate basis, total sales rose 3 percent and comparable store sales increased 2 percent.
* Sales in the Asia-Pacific region (which Tiffany reports separately from Japan) rose 23 percent to $138.9 million. On a constant-exchange-rate basis, sales increased 18 percent due to growth in most countries, and comparable store sales rose 15 percent.
* Sales in Europe increased 13 percent to $114.9 million. On a constant-exchange-rate basis, sales rose 21 percent due to growth in the U.K. and most of continental Europe, and comparable store sales increased 15 percent.
* Other sales declined 45 percent to $7.4 million. The company this came from an expected decrease in wholesale sales of rough diamonds (following higher-than-normal sales in the previous year), partly offset by increased wholesale sales of finished goods to independent distributors within emerging markets.
“We are very pleased with this worldwide sales growth, and with the increases we saw in every region in both months of the holiday period,” said Michael J. Kowalski, Tiffany chairman and CEO. Healthy sales growth was seen across most product categories, with particular strength in Tiffany's fine jewelry collections, diamond engagement rings and fashion gold jewelry, although with limited growth in silver jewelry sales.”
During the holiday period, the New York-based company opened U.S. stores in Houston, Jacksonville and Los Angeles; Asia-Pacific stores in China (Kunming) and Korea (Seoul); and European stores in Spain (Barcelona) and the U.K. (London). The company operates 232 stores (96 in the Americas, 56 in Japan, 51 in Asia-Pacific and 29 in Europe), versus 220 stores a year ago.
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