New York -- Tiffany & Co.’s net income rose a better-than-expected 3% to $83.6 million in its first quarter, up from the prior year’s $81.5 million, boosted by sales improvement across all its regions, particularly Asia. Global same-store sales rose 8% during the quarter.
The earnings bump came on a 9% worldwide net sales increase to $895 million. In the Americas region, total sales rose 6% to $408 million. Same-store sales rose 3% with relatively stronger growth in the New York flagship store.
In the Asia-Pacific region, total sales of $223 million were 15% higher than a year ago.
During the current fiscal year, Tiffany expects open six new stores in the Americas, seven in Asia-Pacific and three in Europe, while closing one each in Japan and Taiwan), as well as refurbishing a number of existing locations around the world.
"While first quarter sales and earnings exceeded our expectations, we are maintaining our earnings forecast for the full year, mindful of continuing soft sales results in the Americas and the negative translation effect of a weaker yen,” said Michael J. Kowalski, chairman and CEO of Tiffany & Co.
Kowalski said that the retailer will launch a redesigned website later this year and also introduce a jewelry collection based on The Great Gatsby, among planned new products.