Luxury jewellery retailer Tiffany & Co has reported a strong first quarter in which profit grew $84 million.
Highest growth was experienced in Asia Pacific, where sales rose 15 per cent to $223 million with strongest sales in Greater China. Sales in Europe and the US both increased by six per cent.
In Japan, where it has 55 stores, sales climbed by just two per cent due to the negative effect of the weakening yen.
“Worldwide, first quarter sales exceeded our expectations, enabling us to improve our sales leverage on fixed expenses and achieve earnings growth,” said CEO Michael Kowalski.
Tiffany & Co has opened two stores in the first quarter, one in China and another one in Taiwan. As at April 30, the retailer has a total of 275 stores, 66 of which are in Asia Pacific.
The remaining year will see Tiffany & Co adding 14 company-operated stores including seven in Asia Pacific. It will close one store in Japan and another one in Taiwan.
“While first quarter sales and earnings exceeded our expectations, we are maintaining our earnings forecast for the full year, mindful of continuing soft sales results in the Americas and the negative translation effect of a weaker yen,” said Kowalski.
