Tiffany’s quadruples earnings

Posted March 30, 2010 |

Tiffany & Co recorded a huge profit jump with the help of a booming Australian market, indicating jewellery customers are willing to spend more as fears about the economy lessen.

The company have reported $153 million in net earnings for the quarter ended 31 January, 2010, compared to $34 million for the previous year.

This was helped by a massive 51 per cent jump in net sales in the Asia-Pacific region (excluding Japan), which includes Australia.

Tiffany & Co opened a new store in Melbourne during this quarter, and now operates seven stores in Australia out of the 74 in the Asia-Pacific region, excluding Japan.

The results are in line with Tiffany & Co president James E Quinn‘s comments last month that Australia was a key growth area for the company.

"It's definitely a market that still has more potential for growth," Quinn told The Sydney Morning Herald at the time.

Quinn was in Sydney scouting locations for new Tiffany stores, with a view to opening more stores in Australia in the next few years.

In comparison to the 51 per cent jump in Asia-Pacific net sales, the Americas reported a 14 per cent increase and Europe 29 per cent for the fourth quarter.

Tiffany & Co CEO Michael J Kowalski attributed the strong results to smart money management and the brand’s growing international popularity.

“Notwithstanding the global economic challenges over the past year, the decisive measures we took to control spending were successful and, combined with the considerable and growing international awareness of the Tiffany & Co. brand, helped us to generate strong earnings and free cash flow,” he said.

Kowalski also discussed the key factors contributing to Tiffany & Co’s success. “Tiffany has the necessary components for ongoing success – compelling products, organizational and financial strength, an efficient infrastructure and a premium brand that is increasingly recognised for lasting value,” he said.

Tiffany & Co’s target for the remainder of 2010 is for just under 10 per cent growth in Asia-Pacific sales.

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