Strong demand for jewelry in Asia offset a decline in the U.S. to lift quarterly sales at the upscale retailer. Fred Katayama reports.
Strong demand for jewelry in Asia lifted quarterly sales at Tiffany. Japanese customers spent more money at its stores, and its China and Korea operations saw strong sales. That helped offset a decline in sales in the U.S., where customers spent less. Plus, holiday sales fell at the upscale jeweler's flagship Fifth Avenue store in New York City due to its proximity to Trump Tower, where heavy security guards President Donald Trump's Manhattan residence. Profit fell, partly due to higher costs for labor. But those results beat Wall Street's expectations. Tiffany issued an upbeat forecast. It sees adjusted earnings rising by a mid-single digit percentage this fiscal year. Consumer Edge Research senior analyst David Schick called the results "A beat with solid guidance," saying, "We continue to see Tiffany moving faster with newness." Tiffany shares, which have risen sharply since its CEO stepped down last month, shot higher at the market open.