Tiffany & Co. holiday sales rise 11% in Europe

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Increase in UK sales; US brand’s total net holiday sales hit $1bn.

Tiffany & Co. has released its holiday sales report, with worldwide net sales in the two-months ended December 31 2013 rising 4% to $1.03 billion (£62.6m).

On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into US dollars, Tiffany’s worldwide net sales increased 8% due to growth in all regions, and comparable store sales increased 6%.

Total sales in Europe rose 11% to $131 million (£7.9m). On a constant-exchange-rate basis, total sales increased 8% and comparable store sales rose 3%, due to increased sales in the United Kingdom as well as most of continental Europe.

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Tiffany chairman and chief executive Michael J. Kowalski said: "Tiffany enjoyed a good holiday season with overall sales results in line with our expectation, and we were pleased to see growth across our fine and statement, engagement and fashion jewellery categories.

"Based on these sales results and related margins, we expect that full year earnings before certain charges will meet the most recent forecast we provided in November."

The rest of world net sales showed a 6% increased in sales in the Americas region, totalling $550 million (£334m). On a constant-exchange-rate basis, total sales increased 7% and comparable store sales rose 7% due to broad-based sales growth across most of the region.

The US brand’s total sales in the Asia-Pacific region increased 5% to $196 million (£119m), with comparable store sales unchanged from the prior year as higher sales in Greater China were offset by declines in other markets.

Tiffany’s business in Japan was said to have performed well in the holiday period, despite a total sales decline of 12% to $135 million (£82m) due to the negative translation effect from a weaker yen versus the US. However, comparable store sales rose 10%.

As of December 31 2013, Tiffany operated 286 stores worldwide, with 121 in the Americas, 69 in the Asia-Pacific region, 54 in Japan, 37 in Europe and five in the UAE, an increase of 12 stores compared to the end of 2012.
 

Tiffany & Co. was recently ordered to pay Swatch Group damanges totalling £274 million relating to the breakdown of its watch partnership with the Swiss watch manufacturer. Tiffany said that the decision would not impact its ability to realise its existing business plans in the short or long term and that it would review its legal options.

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