Dive Brief:
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Upscale jewelry retailer Tiffany & Co. topped expectations with Q1 sales and profits in the U.S. and Europe despite the strong dollar. Q1 net income dropped 16.5% to $104.9 million ($.81 per share), topping analyst expectations of $.70 per share.
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Same-store sales dropped 2% in Europe and 1% in the Americas; overall same-store sales dropped 7%, beating expectations of a 9% drop. Higher sales in the U.S., plus growth in Canada and Latin America led to a rise in overall sales in the Americas of 1%, while overall sales in Europe rose 2%.
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Revenue dropped 5% to $962.4 million, topping analyst estimates averaging $918.7 million.
Dive Insight:
Tiffany is especially vulnerable to currency changes because they change the impact of their high price tags dramatically, and the strong dollar is a challenge for tourists and shoppers abroad. The somewhat healthy sales in Europe were thanks mostly to visitors there from elsewhere, the company said.
The jeweler also said that its “Tiffany T” fashion line, new design director Francesca Amfitheatrof’s first collection, is doing well.
