Christmas came early at Tiffany & Co. upon the Nov. 26 release of its latest financial results. The retailer reported a 50 percent increase in earnings—$95 million compared with $63 million a year ago—in the third quarter (ended Oct. 31). Worldwide sales also rose 7 percent, to $911 million, in that same period.
Tiffany’s year-to-date figures saw similar bumps: Worldwide sales were up 7 percent (to $2.7 billion), while net earnings increased 20 percent to $285 million.
In a statement, chairman and CEO Michael J. Kowalski pronounced the company “very pleased” with the overall results. “Worldwide sales growth in the quarter demonstrated the growing power of the Tiffany & Co. brand and the benefits of our expanding global presence,” he said. “Operating earnings rose faster than sales, reflecting favorable product cost trends and ongoing well-controlled expenses.”
Kowalski cited the jeweler’s “expanded fashion jewelry designs”—including the Atlas collection, a Roman numeral–inspired line of pendants, rings, necklaces, earrings, bangles, and watches, priced $125–$26,500—as top sellers. And fine and statement jewelry, particularly yellow diamonds, continue to be strong categories. (Click here to read the full detailed report.)
Meanwhile, Signet Jewelers spread some holiday cheer of its own with its Nov. 26 financial report. For its third quarter (ending Nov. 2), total sales were $771.4 million—up 7.7 percent from last year. Same-store sales increased 3.2 percent, and e-commerce sales rose 16.3 percent.
In the U.S. division, sales totaled $632.1 million—up 9.8 percent. The increase was driven predominantly by bridal, colored diamonds, and watches, said a company release. Kay and Jared saw more—and pricier—transactions. Same-store sales were up 4.2 percent. And e-commerce sales rose 11.7 percent to $16.2 million, which the company attributes to its October 2012 website relaunch.
In its U.K. division, sales rang in at $139.3 million—down 0.9 percent from last year’s third quarter. Same-store sales also decreased 0.9 percent. The average transaction value declined, but the number of transactions rose. Bridal and diamond sales were up. And e-commerce saw a 29.4 percent bump, from $5.1 million to $6.6 million. (See more details here.)
“We are pleased with our third quarter results, led by a Kay same-store sales increase of 5.8 percent,” said CEO Mike Barnes in a statement. He also emphasized the company’s excitement about its recent Botswana diamond-polishing factory acquisition, and promised “an outstanding shopping experience” during the upcoming holiday season. “Our compelling merchandise assortments will be supported by new, innovative advertising campaigns together with a variety of technology initiatives,” he added. “Collectively, these competitive strengths have us well-positioned for the fourth quarter.”
Signet expects a low- to mid- single-digit range increase in same-store sales in the fourth quarter.