Tuesday, 5th September 2006 (5780 views)

Top end jeweller Tiffany has revealed lower than anticipated profits for the second quarter.

The US firm, which has an extensive gold collection, saw net income drop 19 per cent for the three months to July 31st to $41.1 million, from $50.6 million a year earlier.

A recurrence of weakness in the Japanese sector, which is Tiffany's largest market outside of the US, was partially blamed for the disappointing figures.

However, sales at outlets that have been open at least a year rose ten per cent worldwide and by five per cent in the US, although such sales only climbed by two per cent in Japan.

This factor is of interest to firms as it allows them to gauge the continuing success of a store. Investors worried of a declining worldwide economy have caused shares at Tiffany to drop by 15 per cent from the start of the year.

Yet many analysts believe that because Tiffany's customers are generally wealthy, they are less affected by factors such as rising interest rates and petrol prices, meaning the firm has a good chance of brushing off any global economic problems.

 

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