Tiffany & Co’s sales up 4% in Q3

Net income dips 30%
Tiffany & Co’s sales up 4% in Q3

At the close of the third quarter ending October 31, 2012, Tiffany & Co. recorded an increase of around 4 percent (on y-o-y basis) in its revenues to $852.7 million. The said months recorded a fall in net income which dipped around 30 percent to $63.2 million. The retailer’s cost of sales rose 12 percent to $388.5 million and earnings from operations fell nearly 20 percent to $117.3 million. Globally, comparable-store sales were higher by 1 percent.

The retailer noted that rising prices of diamonds and precious metals were responsible in pulling down gross margins from 57.9 percent in the third quarter last year to 54.4 percent in the said quarter this year. Also, factors of higher-priced goods with lower margins, decreased sales leverage on fixed costs, further affecting the margin.

The company will maintain a cautious near-term outlook about global economic conditions, and also expects some improvement in the holiday sales, partly due to the easing of the y-o- y sales comparisons, and new store openings and product developments.


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