Jeweler Tiffany posts first sales rise in eight quarters

Tue Nov 29, 2016 12:21pm EST
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By Abhijith Ganapavaram

(Reuters) - Tiffany & Co (TIF.N: Quote) reported its first rise in sales in two years as more people shopped in its stores in Japan and China, and the upscale jeweler said sales in the United States declined at their slowest quarterly pace this year.

The company's shares rose as much as 8 percent on Tuesday, their highest in 15 months.

However, the luxury retailer - whose flagship store is next to the Trump Tower in New York - said it could not guarantee that sales in the current quarter would not be affected by protests and stepped-up security in the area since the election.

While traffic has slowed at Tiffany's 5th Avenue store, it accounts for "less than 10 percent" of net sales, Tiffany said.

The company said Japanese shoppers bought more at home and in the United States, in the third quarter ended Oct. 31, as the yen strengthened against the dollar.

Net sales increased 1.2 percent to $949.3 million, beating the average analysts' estimate of $923.7 million, according to Thomson Reuters I/B/E/S.

"The 1 percent uplift is modest, but it is far better than the string of poor numbers the company has been posting for well over a year," said Neil Saunders, chief executive of research firm Conlumino.

"That said, the figures do not show that all the problems at Tiffany have been resolved."   Continued...

The logo of U.S. jeweller Tiffany & Co. is seen at a store at the Bahnhofstrasse shopping street in Zurich, Switzerland October 26, 2016.   REUTERS/Arnd Wiegmann