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Tiffany's Q1 net earnings rise 8%

31 May '06

3 min read

Jewelry maker Tiffany & Co has reported increases in net sales and net earnings for the fiscal quarter ended April 30th 2006. Results benefited from international sales growth and a higher gross margin.

Net sales of $539,241,000 were 6 percent higher than $509,901,000 in the first quarter of 2005. On a constant-exchange-rate basis which excludes the effects of translating foreign-currency-denominated sales into US dollars, net sales rose 9 percent and worldwide comparable store sales increased 5 percent.

Net earnings increased 8 percent to $43,142,000 from $40,058,000. Earnings in the first quarter of 2005 included a tax benefit of $1,500,000 related to the repatriation provisions of the American Jobs Creation Act of 2004. Earnings before income taxes increased 13 percent.

Sales by channel of distribution were as follows:

-- US Retail sales increased 2 percent to $260,580,000 and comparable store sales declined 1 percent. Comparable branch store sales were equal to the prior year and sales in the New York flagship store declined 7 percent.

-- International Retail sales, in US dollars, increased 13 percent to $215,164,000. On a constant-exchange-rate basis, sales rose 21 percent due to 15 percent total retail sales growth in Japan and increases in other regions; on that same basis, comparable international store sales rose 16 percent due to increases of 12 percent in Japan, 20 percent in the Asia-Pacific region outside Japan and 24 percent in Europe.

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