Tiffany's Reports Drop in Revenues for First Quarter
Tiffany's reported a 62.2% drop
in first quarter earnings, as consumers continue to forgo spending on luxury goods. Management said that the sales declines are starting to slow and believes that the firm will be profitable for the year ahead.
For the quarter ended April 30, net profits fell to $24.3 million, or 20 cents a share, on a 21.7 percent drop in sales to $523.1 million.
"Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations," said Michael Kowalski, chairman and chief executive officer.
The company is now one month into its second quarter and Kowalski said the rate of sales decline has lessened slightly in the Americas and more so in the rest of the world. Tiffany expects sales to fall by about 11 percent this year.
During this difficult time for luxury jewelers, Tiffany's continues to innovate with launches of jewelry styles for both the high and the low end pricing. The charm bracelets continue to sell well in sterling silver and in gold as do Paloma Picasso's lovely sugar stacks rings.
Tiffany's reported a 62.2% 
