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Wednesday, 30th November 2005 (5726 views)

Tiffany's has posted a solid set of quarterly results, indicating continued strength in the luxury gold and jewellery retail market.

The world's second largest luxury jeweller saw net profits for the three months to October leap 37 per cent to $23.8 million as sales flew up 8.4 per cent to $500.1 million.

It represents the retailer's third profit gain in four quarters, a success it attributes to its move to focus more on expensive items.

The New York-based jeweller achieved better results in the US – where some 56 of its 150 outlets are based.

Japan, Tiffany's second biggest market, remains a cause for concern, however.

To counter flat sales in the Asian country, the retailer is now offering more gold jewellery and items worth over $2,000 after concluding that cheaper silver jewellery items weren't selling.

Tiffany's is also facing an onslaught from rivals on its home turf after De Beers opened its maiden US store near its flagship outlet in Fifth Avenue in New York this June.

Jeweller Harry Winston is also planning to open further outlets in Florida, Hawaii and Bal Harbour in December.

Despite this, Tiffany's – which is second only to Richemont in global sales - is still a hit with the analyst community

"Tiffany's remains a world-class luxury-goods brand that has enhanced, not slackened, its high-end appeal over the last several years,' commented Legg Mason's David Schick.

 

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