Tiffany & Co is back on track: higher sales and profit 2012
By FashionUnited
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Consequently, sales are "tracking in line" with the company's expectations so far this quarter, Chief Executive Michael Kowalski said in a statement. In the same line, Kowalski shared the good news with analysts on a conference call, advancing that Tiffany sees long-term sales gains of 10% to 12% per year, and a 15pc increase in annual earnings.
The company forecast a full-year profit of between $3.95 and $4.05 per share, above Wall Street estimates of $3.93, according to Thomson Reuters I/B/E/S. As reported by Reuters, the famous jeweller said that much of its profit growth for the year will occur later in 2012, thanks partly to a jewellery tie-in with the upcoming "Great Gatsby" motion picture starring Leonardo DiCaprio. Tiffany is also planning to carry 15% more inventory this year to support the chain's 175th anniversary.
Tiffany reported net income of $178.4 million, or $1.39 per share, for the fiscal fourth quarter ended January 31, down from $181.2 million, or $1.41 per share, a year earlier. That was below the $1.42 per share that Wall Street analysts were expecting, highlighted.
Sales increased 8 % to $1.19 billion in the fourth quarter, in a marked slowdown from the pace of the first nine months of the fiscal year. Sales at stores open at least a year rose 5 %.
The iconic diamond seller has much to thank top tourists, as spending by foreign visitors accounted for some 40 % of sales at Tiffany's Fifth Avenue store, which generated almost one-tenth of the company's total sales, explained the company.
In the same vein, 25 % of Tiffany's sales in Europe came from non-European customers. Asia excluding Japan remained a major source of growth for Tiffany, with same-store sales up 13 %. That market now accounts for almost one-fifth of overall sales. Also, in Japan, Tiffany's second-largest market after the United States, business continued to recover from the tsunami and nuclear disaster of a year ago, with same-store sales up 4 %.