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Tiffany 2Q Sales Flat as Profit Falls 16%
Aug 27, 2015 9:17 AM
By Rapaport News
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RAPAPORT... Tiffany & Co. today said second quarter sales were flat at $991 million versus the comparable period last year, according to a company press release. Profit was down 16 percent to $105 million. Comp store sales increased by 7 percent., beating analyst estimates of 3.5 percent.
The company said lower wholesale diamond costs drove a 40 basis-point increase in the gross profit rate of 59.9 percent.
Japan led the company’s regional sales growth, showing a 27 percent jump, followed by Europe with a 19 percent increase and Asia-Pacific at 9 percent growth. Sales in the Americas slipped 2 percent, driven largely by lower foreign tourist visits to New York and Hawaii.
A strong dollar has trimmed the value of Tiffany's sales outside of the U.S. and has kept foreign tourists from making purchases in its American stores.
“We entered this year expecting translation and tourism-related pressures on sales and earnings from the exceptionally strong U.S. dollar, as well as challenging economic conditions in certain markets,” said Frederic Cumenal, chief executive officer. “While the adverse effects from the strong dollar have been even more significant than initially expected, we met our overall expectations in the first half of the year.”
Tiffany now expects net earnings to fall between 2 percent and 5 percent for the full year, with business regaining momentum in the fourth quarter.
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Tags:
Earnings Results, Rapaport News, Tiffany
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