Tiffany & Co.’s Holly Jolly Holiday Season
Multinational jeweler Tiffany & Co. (NYSE:TIF) experienced a jump in sales over the holiday season this past year, reporting a 6 percent leap in U.S. sales in stores open for at least a year. American sales account for more than half of the company’s total revenue, reports Reuters.
The famous jeweler, known for its signature “Tiffany blue” boxes and its flagship, Fifth Avenue Manhattan store, site of several iconic scenes from the 1961 film Breakfast at Tiffany’s, maintained its full-year profit forecast in 2013, according to Reuters. This, during a year in which many large retailers were forced to cut their outlooks as a result of steep discounts.
“Tiffany enjoyed a good holiday season with overall sales results in line with our expectation, and we were pleased to see growth across our fine and statement, engagement and fashion jewelry categories. Based on these sales results and related margins, we expect that full year earnings before certain charges will meet the most recent forecast we provided in November,” Michael J. Kowalski, Chair and CEO of the company said in a press release, per the Wall Street Journal. In November and December, a two-month window which can account for nearly half of the company’s profit and almost a third of annual sales net sales rose 8 percent.
Tiffany’s also experienced a rise in sales in it’s other markets, including the Asia-Pacific, which saw a jump of about 5 percent, to $196 million. In Europe, as well total sales increased by 11 percent to $131 million, per the Wall Street Journal.
According to Edward Jones analyst Brian Yarbough, who spoke with Reuters said of Tiffany’s success, “They put some new products into the marketplace and they put money behind marketing and advertising them and that seems to be working.”
Other jewelers reported similar jumps in sales during the holiday season, including lower-end competitor Zale Corp. (NYSE:ZLC), which reported a 2 percent rise in sales during November and December. Zale’s shares rose to 17 percent, up to $16.53. In contrast, Signet Jewelers Ltd. (NYSE:SIG), the largest jeweler in the U.S. saw shares fall 1 percent Friday to $72.86. On Thursday, the company estimated fourth-quarter profit that fell short of analysts estimates; increased promotions is thought to have hurt the company’s margins, according to Reuters.