TIF - Tiffany Sales Growth Speeds Up in the Fourth Quarter
On Friday, Tiffany & Co. (NYSE: TIF) announced accelerating sales growth for its fiscal fourth quarter, which runs through Jan. 31.
Sales rose 3% after adjusting for currency exchange rate shifts and new store openings, compared to a 1% boost in the prior quarter. That result was at the high end of the updated outlook management had issued on Dec. 26.
Executives credited demand for higher value items -- particularly its gold and diamond offerings -- as boosting average spending while pressuring profitability last quarter. Gross profit margin fell to 63.3% of sales from 63.8% a year ago. Higher priced products carry a lower gross margin, management explained.