Luxury jewelry retailer Tiffany posts profits down 75%

Luxury New York-based jewelry retailer Tiffany & Co has posted earnings as of the quarter-ended January 31, 2009.

The company reported that sales were down 20% to $841.2 million from $1.05 billion. Net income for the quarter was down to $31.1 million ($0.25 per share) from $127.4 million ($0.96 per share) a year ago in the same period. Same store sales were down 23% over last year.

The sharp decline in demand as a result of the global economic downturn prompted the jewelry retailer to close its Irdesse pearl chain. Demand for items costing more than $50,000 dropped significantly.

Tiffany CEO Michael Kowalski previously announced plans to cut 10% of the company’s worldwide workforce by the end of the year to deal with the downturn.

Tiffany now forecasts total sales to be down 11% for 2009. Actual sales could fall below that given more tuff economic times projected ahead as consumer confidence dips.

The Tiffany stock today is surprisingly up about 14% to $23.06 following the news in mid-day trading.


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Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to hercules@business2press.com
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  • T

    wow sounds like their clientel have wisened up and decided to stop paying outrageous prices for jewelry.

  • T

    wow sounds like their clientel have wisened up and decided to stop paying outrageous prices for jewelry.

  • http://business2press.com Hercules K

    you know what i find funny – if you can afford a $50,000 necklace, i just can't see how the economic downturn can hurt you that much……

  • http://business2press.com Hercules K

    you know what i find funny – if you can afford a $50,000 necklace, i just can't see how the economic downturn can hurt you that much……

  • notreally

    i feel so sorry for them…..not…..

  • notreally

    i feel so sorry for them…..not…..

  • Bob

    “Actual sales could fall below that given more tuff economic times projected ahead as consumer confidence dips.”

    I SO TUFF!

  • Bob

    “Actual sales could fall below that given more tuff economic times projected ahead as consumer confidence dips.”

    I SO TUFF!

  • http://www.modastrass.com/ swarovski

    “pearls and jewelery can make a new and stylish look”

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