Overseas Demand Polishes Tiffany

Asia, Europe Strength Offsets Softness in U.S.; Sales Outlook Cautious

Tiffany & Co's fiscal-first-quarter profit rose 19% as higher demand in Europe and Asia helped make up for soft sales in the U.S.

In addition, the New York jeweler raised its full-year earnings outlook while noting it maintains "a cautious outlook for U.S. sales" and doesn't expect an improvement until later this year.

Tiffany also said it plans to introduce a "new, smaller store format" in the U.S. later this year, in addition to its plans to open about 24 new stores world-wide.

Sales at stores open at least a year rose 21% in Europe and 15% in the AsiaPacific region, driven by demand in areas from London and Italy to Hong Kong and China. Adjusted for currency effects, same-store sales rose 12% in Europe and 4% in the Asia-Pacific region.

Overseas sales helped offset flat sales in the U.S., the company's larg market, where a slowing economy' curtailed spending on jewelry , other discretionary items.

International shoppers taking vantage of the weak dollar also hel) Tiffany'S domestic sales. The com ny's New York flagship store saw a: jump in same-store sales, driven by demand from foreign tourists. Meanwhile, sales at branch stores declined 4% as the company experienced soft sales of items below $500.

Sales in the quarter ended April have been driven by engagement rings in the U.S., silver jewelry outside of U.S. or designer collections such as Elsa Peretti jewelry.

Chief Executive Michael J. Kowalski said strong sales growth despite "only modest growth in the U.S. due to challenging conditions reflects the benefit of globally diversified distribution."

"Tiffany is becoming a truly global brand," said Pali Research analyst Stacey Widlitz, who has a "buy" rating on
the stock. "The strength in international and the size of it is enough to offset however long the U.S. consumer weakness is lasting. International consumers love this brand."

World-wide sales so far in May have met the company's expectations, Tiffany said. While U.S. same-store sales for the year are expected to rise, the company said it expects second quarter U.S. sales to decline, which will pressure profit in that period.

Tiffany raised its full-year outlook it boosted in March an additional five cents and now expects earnings of $2.80 to $2.90 a share, maintaining its forecast for net sales growth of about 10%. The latest mean estimate of analysts surveyed by Thomson Reuters was for earnings of $2.73 a share on 10% sales growth to $3.23 billion.

By: Andrie Cheng & Donna Kardos
Wall Street Journal; May 31-June 1, 2008

Overseas Demand Polishes Tiffany

Asia, Europe Strength Offsets Softness in U.S.; Sales Outlook Cautious

Tiffany & Co's fiscal-first-quarter profit rose 19% as higher demand in Europe and Asia helped make up for soft sales in the U.S.

In addition, the New York jeweler raised its full-year earnings outlook while noting it maintains "a cautious outlook for U.S. sales" and doesn't expect an improvement until later this year.

Tiffany also said it plans to introduce a "new, smaller store format" in the U.S. later this year, in addition to its plans to open about 24 new stores world-wide.

Sales at stores open at least a year rose 21% in Europe and 15% in the AsiaPacific region, driven by demand in areas from London and Italy to Hong Kong and China. Adjusted for currency effects, same-store sales rose 12% in Europe and 4% in the Asia-Pacific region.

Overseas sales helped offset flat sales in the U.S., the company's larg market, where a slowing economy' curtailed spending on jewelry , other discretionary items.

International shoppers taking vantage of the weak dollar also hel) Tiffany'S domestic sales. The com ny's New York flagship store saw a: jump in same-store sales, driven by demand from foreign tourists. Meanwhile, sales at branch stores declined 4% as the company experienced soft sales of items below $500.

Sales in the quarter ended April have been driven by engagement rings in the U.S., silver jewelry outside of U.S. or designer collections such as Elsa Peretti jewelry.

Chief Executive Michael J. Kowalski said strong sales growth despite "only modest growth in the U.S. due to challenging conditions reflects the benefit of globally diversified distribution."

"Tiffany is becoming a truly global brand," said Pali Research analyst Stacey Widlitz, who has a "buy" rating on
the stock. "The strength in international and the size of it is enough to offset however long the U.S. consumer weakness is lasting. International consumers love this brand."

World-wide sales so far in May have met the company's expectations, Tiffany said. While U.S. same-store sales for the year are expected to rise, the company said it expects second quarter U.S. sales to decline, which will pressure profit in that period.

Tiffany raised its full-year outlook it boosted in March an additional five cents and now expects earnings of $2.80 to $2.90 a share, maintaining its forecast for net sales growth of about 10%. The latest mean estimate of analysts surveyed by Thomson Reuters was for earnings of $2.73 a share on 10% sales growth to $3.23 billion.

By: Andrie Cheng & Donna Kardos
Wall Street Journal; May 31-June 1, 2008

Overseas Demand Polishes Tiffany

Asia, Europe Strength Offsets Softness in U.S.; Sales Outlook Cautious

Tiffany & Co's fiscal-first-quarter profit rose 19% as higher demand in Europe and Asia helped make up for soft sales in the U.S.

In addition, the New York jeweler raised its full-year earnings outlook while noting it maintains "a cautious outlook for U.S. sales" and doesn't expect an improvement until later this year.

Tiffany also said it plans to introduce a "new, smaller store format" in the U.S. later this year, in addition to its plans to open about 24 new stores world-wide.

Sales at stores open at least a year rose 21% in Europe and 15% in the AsiaPacific region, driven by demand in areas from London and Italy to Hong Kong and China. Adjusted for currency effects, same-store sales rose 12% in Europe and 4% in the Asia-Pacific region.

Overseas sales helped offset flat sales in the U.S., the company's larg market, where a slowing economy' curtailed spending on jewelry , other discretionary items.

International shoppers taking vantage of the weak dollar also hel) Tiffany'S domestic sales. The com ny's New York flagship store saw a: jump in same-store sales, driven by demand from foreign tourists. Meanwhile, sales at branch stores declined 4% as the company experienced soft sales of items below $500.

Sales in the quarter ended April have been driven by engagement rings in the U.S., silver jewelry outside of U.S. or designer collections such as Elsa Peretti jewelry.

Chief Executive Michael J. Kowalski said strong sales growth despite "only modest growth in the U.S. due to challenging conditions reflects the benefit of globally diversified distribution."

"Tiffany is becoming a truly global brand," said Pali Research analyst Stacey Widlitz, who has a "buy" rating on
the stock. "The strength in international and the size of it is enough to offset however long the U.S. consumer weakness is lasting. International consumers love this brand."

World-wide sales so far in May have met the company's expectations, Tiffany said. While U.S. same-store sales for the year are expected to rise, the company said it expects second quarter U.S. sales to decline, which will pressure profit in that period.

Tiffany raised its full-year outlook it boosted in March an additional five cents and now expects earnings of $2.80 to $2.90 a share, maintaining its forecast for net sales growth of about 10%. The latest mean estimate of analysts surveyed by Thomson Reuters was for earnings of $2.73 a share on 10% sales growth to $3.23 billion.

By: Andrie Cheng & Donna Kardos
Wall Street Journal; May 31-June 1, 2008

Platinum Bridal Market Helps Fuel Jewelry Demand

NEW YORK--(BUSINESS WIRE)--Despite tough economic times, sluggish holiday season sales and soaring prices of metals and gemstones, industry leaders project an increase in jewelry sales for 2008. With inflation rates expected to jump as high as 7-8 percent, the International Diamond Exchange forecast for jewelry sales in the U.S. predicts a 3 percent increase in the upcoming year—from $64.0 billion (estimated) in 2007 to $65.9 billion in 2008.

In a recent article by Ken Gassman “State of the Jewelry Industry—2008 Jewelry Demand,” for Idexonline.com, Gassman highlights the bridal industry’s substantial influence on the forecast. Millennials, or the children of Baby Boomers, are influencing both the jewelry and bridal industries in significant ways. In fact, in less than ten years, the number of weddings is projected to increase by approximately 30 percent among Millennials.

“Not only are Millennials more likely to get married—rather than just live together like children of the 1960s—they are also more likely to spend heavily on bridal jewelry because they have more wealth than their predecessors.”

This trend is especially significant for Platinum wedding bands since the type and quality of metal is one of consumers’ primary considerations when purchasing bridal jewelry.

• Platinum is 30 times more rare than gold;
• Platinum jewelry sold in the U.S. is traditionally 90-95% pure Platinum compared to 18K gold, which is only 75% pure; and 14K which is only 58.5% pure;
• Platinum is more durable and will not oxidize or fade; so prongs, patterns and engravings do not wear down like other metals;
• Platinum’s density and molecular structure make it the most secure setting for a precious gems
• Platinum jewelry has a luxurious weighty feel, weighing over a third more than the same piece in gold.
• Platinum jewelry requires a higher level of craftsmanship than other precious metals, meaning that only the finest jewelers offer it.

Read the Entire Article Here

Platinum Bridal Market Helps Fuel Jewelry Demand

NEW YORK--(BUSINESS WIRE)--Despite tough economic times, sluggish holiday season sales and soaring prices of metals and gemstones, industry leaders project an increase in jewelry sales for 2008. With inflation rates expected to jump as high as 7-8 percent, the International Diamond Exchange forecast for jewelry sales in the U.S. predicts a 3 percent increase in the upcoming year—from $64.0 billion (estimated) in 2007 to $65.9 billion in 2008.

In a recent article by Ken Gassman “State of the Jewelry Industry—2008 Jewelry Demand,” for Idexonline.com, Gassman highlights the bridal industry’s substantial influence on the forecast. Millennials, or the children of Baby Boomers, are influencing both the jewelry and bridal industries in significant ways. In fact, in less than ten years, the number of weddings is projected to increase by approximately 30 percent among Millennials.

“Not only are Millennials more likely to get married—rather than just live together like children of the 1960s—they are also more likely to spend heavily on bridal jewelry because they have more wealth than their predecessors.”

This trend is especially significant for Platinum wedding bands since the type and quality of metal is one of consumers’ primary considerations when purchasing bridal jewelry.

• Platinum is 30 times more rare than gold;
• Platinum jewelry sold in the U.S. is traditionally 90-95% pure Platinum compared to 18K gold, which is only 75% pure; and 14K which is only 58.5% pure;
• Platinum is more durable and will not oxidize or fade; so prongs, patterns and engravings do not wear down like other metals;
• Platinum’s density and molecular structure make it the most secure setting for a precious gems
• Platinum jewelry has a luxurious weighty feel, weighing over a third more than the same piece in gold.
• Platinum jewelry requires a higher level of craftsmanship than other precious metals, meaning that only the finest jewelers offer it.

Read the Entire Article Here

Platinum Bridal Market Helps Fuel Jewelry Demand

NEW YORK--(BUSINESS WIRE)--Despite tough economic times, sluggish holiday season sales and soaring prices of metals and gemstones, industry leaders project an increase in jewelry sales for 2008. With inflation rates expected to jump as high as 7-8 percent, the International Diamond Exchange forecast for jewelry sales in the U.S. predicts a 3 percent increase in the upcoming year—from $64.0 billion (estimated) in 2007 to $65.9 billion in 2008.

In a recent article by Ken Gassman “State of the Jewelry Industry—2008 Jewelry Demand,” for Idexonline.com, Gassman highlights the bridal industry’s substantial influence on the forecast. Millennials, or the children of Baby Boomers, are influencing both the jewelry and bridal industries in significant ways. In fact, in less than ten years, the number of weddings is projected to increase by approximately 30 percent among Millennials.

“Not only are Millennials more likely to get married—rather than just live together like children of the 1960s—they are also more likely to spend heavily on bridal jewelry because they have more wealth than their predecessors.”

This trend is especially significant for Platinum wedding bands since the type and quality of metal is one of consumers’ primary considerations when purchasing bridal jewelry.

• Platinum is 30 times more rare than gold;
• Platinum jewelry sold in the U.S. is traditionally 90-95% pure Platinum compared to 18K gold, which is only 75% pure; and 14K which is only 58.5% pure;
• Platinum is more durable and will not oxidize or fade; so prongs, patterns and engravings do not wear down like other metals;
• Platinum’s density and molecular structure make it the most secure setting for a precious gems
• Platinum jewelry has a luxurious weighty feel, weighing over a third more than the same piece in gold.
• Platinum jewelry requires a higher level of craftsmanship than other precious metals, meaning that only the finest jewelers offer it.

Read the Entire Article Here