TIFFANY EARNINGS RISE 33% IN THIRD QUARTER
Strong business worldwide for Tiffany & Co. produced overall increases of 17% in sales and 33% in earnings for the third quarter ended Oct. 31. Net sales of $187.8 million were up 17% from $169.1 million in the same quarter of 1994. Net earnings rose 33% to $6.3 million (39¢ a share), compared to $4.7 million (30¢ a share) the prior year.
For the nine-month period ended Oct. 31, net sales of $522.6 million were up 18% from $443.6 million in 1994. Net income of $13.7 million (86¢ a share) rose 37% from $10.0 million (63¢ a share) in 1994.
Sales for Tiffany’s three main channels of distribution were:
U.S. Retail sales rose 21% to $87.4 million in the third quarter and 17% to $231.3 million for the nine months. Comparable store sales were up 14% in the quarter and 13% in the nine months.
Direct Marketing sales of $20.8 million in the third quarter were up modestly from the prior year’s quarter, while nine-month sales of $59.9 million were off 1% from 1994. “High catalog sales offset continued softness in corporate division sales,” said a spokesperson.
International Retail sales rose 19% to $79.6 million in the third quarter and 24% to $231.4 million in the nine months. Growth occurred in most international markets, with comparable store sales in Japan up 11% in local currency in both the third quarter and nine months.
“Our continued healthy sales and earnings growth is the result of ongoing initiatives in store expansion, merchandising and marketing,” said William R. Chaney, chairman of Tiffany.
Two non-recurring developments were included in the third quarter results.
The company restructured its watch operations in Switzerland, outsourcing watch assembly and divesting its assembly operation. As a result, Tiffany recognized a pretax gain of $2.3 million, recorded under “other expenses,” during the quarter related to the recognition of foreign currency translation adjustments on the divested subsidiary’s equity. Tiffany will continue to maintain watch sales and distribution functions in Switzerland to coordinate its worldwide watch needs.
Tiffany adopted a new accounting standard which led to reporting of a pre-tax non-cash impairment charge of $2.5 million on certain assets related to its European operations. This was included under “selling, general and administrative expenses.”
TIFFANY CELEBRATES PICASSO ANNIVERSARY
Tiffany & Co. celebrated its 15-year association with designer Paloma Picasso at a gala reception for her in New York City in November.
The event paid tribute to Picasso’s work and honored Learning Through Art/The Guggenheim Museum’s Children’s Program, an organization with which Picasso has been active for more than a decade. Tiffany’s flagship store displayed art created by children in the program for two weeks in November.
The gala also featured a showcase dedicated to new Picasso designs, including a gold graffiti “X,” a “Hammered Planets” collection of 18k gold jewelry and suites of colored gemstones that featured tanzanite, blue lapis, pink tourmaline and mabe pearl.
“Paloma’s creations are certainly something to celebrate,” said Tiffany Chairman William R. Chaney. “We at Tiffany toast the past 15 years of our association with her and look forward to at least 15 more.”
GORDON’S JEWELERS AD IS CLIO AWARD FINALIST
Gordon’s Jewelers has added two more jewels, but these are for its advertising.
Gordon’s, a division of Zale Corp., Irving, Tex., and its advertising agency, Levenson & Hill of Dallas, were finalists for a 1995 Clio and an International Broadcast Award (IBA), two of advertising’s most prestigious awards. The citations were won by Gordon’s radio advertising campaign, “We’re Going to Make You Smile.”
The Clio Awards attracted an international field of more than 14,000 entries. Gordon’s radio spot was one of 283 finalists. The IBA attracted more than 3,000 entries from around the world in several categories. Gordon’s Jewelers’ ad was one of 10 finalists in the “Musical Radio” category.
“We wanted to capture the feeling one gets from wearing beautiful jewelry,” says Levenson & Hill ad writer and creative director Louis Tridico. “It’s very gratifying that our peers have chosen to recognize us.”
Wal-Mart Inc., the nation’s largest retailer, is launching a major expansion in 1996. The Bentonville, Ark.-based firm plans to open 75 discount stores, 110 super centers and 12 Sam’s Clubs in the U.S. starting Feb. 1., the beginning of its fiscal year.
Capri Jewelers opened a new store in Kilmarnock, Va. Capri is headquartered in Richmond, Va., where the company began its retail division 13 years ago.
Fink’s Jewelers opened a fourth subsidiary store under the name Garibaldi and Bruns in the Crabtree Valley Mall in Raleigh/Durham, N.C. Founded in 1930, Fink’s already operates seven stores under its own name in Virginia and three Garibaldi and Bruns stores in Charlotte, N.C.
The new Ed Marshall Jewelers opened recently in Scottsdale, Ariz. Owner Ed Marshall also owns Capriccio Fine Jewelry in Scottsdale.
Lee Michaels Fine Jewelry opened a new store recently in Jackson, Miss. The chain now has stores in Mobile, Ala., and in Baton Rouge, Shreveport, Lafayette and Hammond, La.
Regency Jewelers opened a new store in October in Huntsville, Ala., bringing its total to over 200 stores.
Tiffany & Co’s newest suburban mall store, located in King of Prussia, Pa., was opened in November by Beth Owen Canavan, eastern region vice president; Cathy Hagan, vice president of the Philadelphia region; and Charles Calvert, director of Tiffany’s Philadelphia store. The new full-service store is part of the international luxury retailer’s expansion into suburban areas of major markets, with two or three new stores opening annually.
Agnew Jewelers, Odessa, Tex., is celebrating its 50th year in business this year. Paul Agnew began repairing watches and selling jewelry in June 1946; his son, Mark, joined the company in 1971. Tony Herring has been sales manager since 1978. Agnew Jewelers has expanded to become a full-line diamond and gold jewelry store and also offers casting, diamond setting, appraisals and repairs. Several special events will be scheduled throughout the year to celebrate the anniversary.
Johannes Hunter Jewelers celebrated the grand opening of its expanded store in Colorado Springs, Colo., in September. The expansion doubled the size of the store, which opened in 1988.
Lorch Diamond Centers, Birmingham, Ala., closed its store in Bay Minette, Ala.