Tiffany profit tops estimates after jewelry price increases

Tiffany & Co., the world’s second-largest luxury jewelry retailer, reported second-quarter profit that topped analysts’ estimates as price increases and declining product costs helped counter tepid sales in the Americas. More

To continue reading this article, please do one of the following.



manufacturing

Tiffany profit tops estimates after jewelry price increases

BLOOMBERG FILE PHOTO/KONRAD FIEDLER
DESPITE A DECLINE IN SECOND-QUARTER REVENUE, Tiffany & Co. saw double-digit profit growth, as raw material cost declines and retail price increases helped the world's second-largest luxury jewelry retailer beat expectations.
Posted 8/27/13

NEW YORK - Tiffany & Co., the world’s second-largest luxury jewelry retailer, reported second-quarter profit that topped analysts’ estimates as price increases and declining product costs helped counter tepid sales in the Americas.

Net income in the quarter ended July 31 rose 16 percent to $106.8 million, or 83 cents a share, from $91.8 million, or 72 cents, a year earlier, the New York-based company said today in a statement. Analysts projected 74 cents, the average of 22 estimates compiled by Bloomberg.

Tiffany, which has seen a drop in costs of the precious materials it uses to make its jewelry, raised prices this year after holding them steady last year. Sales fell short of estimates amid a disappointing second quarter across the U.S. retail industry.

“It’s lower silver costs they are benefiting from,” Brian Yarbrough, an analyst with Edward Jones & Co. in St. Louis, said in a telephone interview Tuesday. “When they increased prices in the past they didn’t see push-back, and I think that continues: They don’t see the push-back.”

Gross margin, or earnings left after subtracting the cost of goods, came to 57.5 percent of sales compared with 56.3 percent a year earlier.

Next Page
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News