Tiffany posts 26% rise in earnings

Tiffany & Co. buoyed by robust U.S. sales growth and improvements in its international business, reported that its profits rose 26% in the second quarter, The Associated Press reports.

The upscale New York-based jewelry retailer said on Wednesday that it earned $41.15 million in the three months ended July 31. That compared to $32.71 million in the year-ago period.

Sales surged 18% to $442.5 million, from $374.4 million in the year-ago period.

“There are some signs of economic improvement in the U.S. and around the world,” said Michael J. Kowalski, chairman and chief executive, in a statement.

U.S. retail sales increased 14% to $213.04 million in the second quarter. Sales at stores opened at least a year, known as same-store sales, rose 9% in the second quarter—up 11% in branch stores and 2% in Tiffany’s New York flagship store.

Same-store sales in the quarter were reportedly generated by both an increased number of transactions and an increased average transaction amount.

International retail sales rose 14% to $168.99 million in the second quarter. On a constant exchange rate basis, total international retail sales increased 9% in the second quarter.

Direct marketing sales increased 13% to $43.94 million in the second quarter. Combined Internet/Catalog sales rose 21%.

For the six-month period, earnings were $77.01 million compared with $65.42 million.

The company posted sales of $838.3 million, compared with $721.5 million a year ago.