Worldwide net results rise due to double-digit growth in Asia-Pacific.
Tiffany & Co. has announced its holiday sales results for the two months to December 31 2011, revealing a year-on-year sales increase of 7%.
The brand’s management is said to have updated its full year earnings forecast accordingly.
Worldwide net sales rose 7% to $952 million (£620m) during the festive period, the result of double-digit sales growth in Asia-Pacific and Japan and smaller increases in the Americas and Europe.
On a constant-exchange-rate basis worldwide net sales rose 6% and comparable store sales increased 4%.
In the Americas net sales rose 4% to $503 million (£327m) while the Americas’ store sales rose 3% while the New York flagship store’s sales declined 1%.
There was a positive in the Asia-Pacific region however, where net sales increased 19% to $165 million (£107m) and in Japan, sales increased 13% to $160 million (£104m).
In Europe sales creeped up bby only 1%, while comparable store sales declined 4%, with a modest sales growth in continental Europe and lower sales in the UK. Total net sales for Europe in the two months to December 31 were $117 million (£76m).
Michael J. Kowalski, chairman and chief executive officer of Tiffany & Co. said: "After achieving very strong and better-than-expected sales and earnings growth in the first three quarters of 2011, sales weakened markedly in the United States and Europe during the holiday season, reflecting restrained spending by consumers for fine jewellery.
“We are now estimating that earnings per diluted share for the fiscal year ending January 31, 2012 will increase 23% – 25% to a range of $3.60 – $3.65. This estimate compares with a prior forecast made in November of $3.70 – $3.80 per diluted share and our initial fiscal 2011 outlook provided last March of $3.35 – $3.45 per diluted share. All estimates do not include $0.20 per diluted share of nonrecurring expenses."
Kowalski said that the brand is in its preliminary stages of financial planning for 2012 and will provide fuller details on the year in March.
“We remain confident of our ability to expand our worldwide presence, to serve the growing global demand for Tiffany & Co. products and to achieve a solid rate of annual growth in sales and earnings in 2012 despite economic challenges,” Kowalski added.