Tomahawk, WI 08/28/2014 (Basicsmedia) – Upscale Jeweler Tiffany & Co. (NYSE:TIF) mapped another third straight quarter of impressive sales in the U.S., according Topeka Market analyst, Dorothy Lakner, in an interview on CNBC. The jewelry store reported better than expected profits mostly driven by strong sales as well as high prices for high-end jewelry.
The impressive results highlights the strength of the jewelry category in the U.S as jewelers continued to do well as well as other companies in the space. Jewelry sales were not affected by harsh weather conditions as experienced in the first quarter, which negatively impacted the apparel category.
“The category is strong. Tiffany & Co.(NYSE:TIF) has also done a lot, I think to bring in new products, so there is a lot of new products innovation; they are teaching their store’s associates to sell better. I think there are a lot of things going on, but it is really the third quarter now of better than expected sales in the Americas, which is really good,” said Mrs. Lakner.
Tiffany & Co. (NYSE:TIF) has a new design director whose collections have just hit stores and expected to contribute a substantial amount of sales in the third quarter. Tiffany’s net income for the second quarter was up by 16% consequently coming in at $124.1 million. Sales were up by 10% in the U.S. with Asia pacific markets registering a 13% increase in sales.
International markets also continue to perform well for Tiffany seen by a strong sales performance in Asia Pacific. Tiffany & Co. (NYSE:TIF) sales growth in key international markets comes amidst other European companies reporting slow growth in some of the markets.
“Tiffany is much less mature, in other words, it has a smaller store base relative to some of the other luxury goods competitors, and that’s why I think it’s been able to keep growing even as this other retailers or brands have seen a slow down,” said Mrs. Lakner.
China remains a key market for Tiffany & Co. (NYSE:TIF) in terms of sales growth, due to its expansive market base with Australia also coming good in terms of growth opportunities. Japan offered the greatest headwind in the quarter as sales comp tumbled in the quarter by 13% in the wake of a tax hike.