Tiffany & Co reported on Tuesday higher-than-expected sales for the first quarter that included Valentine's Day, helped by gains in all regions and promotions around the jeweler's 175th anniversary and "The Great Gatsby' movie tie-in, according to The Business of Fashion (BOF).
The high-end retailer's revenue rose 9.3 percent to $895.4 million, exceeding Wall Street expectations for $855.1 million, according to Thomson Reuters I/B/E/S.
Tiffany's sales rose 8 percent, reportedly an improvement over the holiday-season quarter, when sales were low and concerns mounted that shoppers were cutting spending on jewelry.
According BOF, the company's results last year were hurt by signs of a slowdown in China and low sales of Tiffany & Co.'s silver jewelry, which attracts more price-conscious but generates more than 25 percent of the high-end retailer's sales.
Tiffany's quarterly results were compared to those of Saks Inc and Coach Inc in the United States, and Burberry Group Plc and Italian fashion house Giorgio Armani. The jewelry retailer's sales echoed these high-end companies and further indicated luxury sales were regaining momentum.
Sales rose 6 percent in the Americas, which credit can be given to its Fifth Avenue flagship store in Manhattan, where sales dropped last year. The Manhattan store generates about one-twelfth of Tiffany's company-wide revenue.
Tiffany also designed jewelry for the Hollywood hit "The Great Gatsby," a tie-in the attracted a lot of attention. Daisy Buchanan, portrayed by Carey Mulligan, was covered from head to toe with Tiffany diamonds.
However, the Company was not going to bank on the movies success to increase their profit margin. According to BOF, Tiffany's kept to its earlier profit forecast, indicating they were concerned about weak sales in the Americas and the impact of yen's depreciation.
Tiffany expects annual profit at $3.43 to $3.53 per share.
BOF reports that for the quarter ended April 30, New York-based Tiffany's earnings rose to $83.6 million, or 65 cents per share, from $81.5 million, or 64 cents a share, a year earlier. Tiffany earned 70 cents a share, while Wall Street expected 52 cents.
