Earnings Increase and Profits Decline of Dazzling Tiffany & Co
Tiffany & Co. reports today an 11%Return to Tiffany Oval tag bracelet decline in net earnings and a net sales increase of 8% for the second quarter. A 10% increase in U.S. comparable store sales was not enough to offset a sales decline in Japan.
Similarly, the first half of the year also an increase in sales but a drop in net earnings.聽
Worldwide comparable store sales rose 10%. International retail sales increased 7% to $180.1 million in the second quarter and comparable store sales increased 2% (both of which included a translation-related benefit of 6%).
In Japan, total retail sales declined 3% in the Tiffany 1837 square cufflinkssecond quarter and comparable store sales decreased 4%.
In other Asia-Pacific markets, comparable store sales rose 19% in the quarter and 26% in the half (including translation-related benefits of 3% and 5%).
In Europe, comparable tiffany store sales increased 9% in the quarter and 15% in the half (including translation-related benefits of 9% and 12%).
Direct marketing sales declined 8% to $40.2 million in the second quarter.
Combined e-commerce and catalog sales rose 2% Tiffany 1837 concove circle cufflinksin the quarter and 7% in the half, due to an increase in the average order size and a decline in the number of orders.
However, Kowalski expressed optimism regarding the second half of the year, including an increase in net earnings. He went on to say he expects comparable store sales in Japan to decline in the third quarter and increase modestly in the fourth quarter.