Tiffany’s sales in the Americas grew 25 percent in the second quarter—but the company said that about half of that increase came from higher spending by foreign visitors.
On an Aug. 26 conference call with investors, vice president of investor relations Mark Aaron singled out Chinese visitors as particularly big spenders—and said the boost from tourist sales were most meaningful in its New York flagship store, where sales grew 41 percent, as well as certain stores in Florida, Las Vegas, and California.
The company also plans to open stores this year in the Stony Point mall in Richmond, Va.; the Fashion Show Mall in Las Vegas; and the Oak Ridge Centre in Vancouver, Canada. A store is also planned for Montreal in 2012. The company is also planning to relocate one of its Boston-area stores from the Atrium Mall to Chestnut Hill.
Highlights of Tiffany’s second quarter financial statement (ended July 31):
- Worldwide sales: $872.7 million, up 30 percent
- Worldwide comparable store sales: up 20 percent
- Net earnings: $90.0 million, up 33 percent
- Sales in the Americas region: $438.2 million, up 25 percent
- Comparable store sales in the Americas region: up 23 percent
- New York flagship store sales: up 41 percent
- Sales in Japan: $142.5 million, up 21 percent
- Sales in Asia-Pacific: $173.2 million, up 55 percent
- Sales in Europe: $101.3 million, up 32 percent
“Despite continuing economic uncertainty, our strong first half performance gives us ample reason to remain confident about our prospects for the balance of the year,” Michael J. Kowalski, chairman and chief executive officer, said in a statement. “We have been able to absorb precious metal and gemstone cost increases while improving our gross and operating margins.”