Autocross Blogs - Chrls Iicey

Jewelry retailer Tiffany & Co.'s earnings more than tripled in the third quarter, buoyed by the sale of its Tokyo flagship. The company also raised full-year-guidance.For the three months ended Oct. 31, discount Tiffany Sets climbed to $98.9 million, or 72 cents a diluted share, from $29.1 million, or 23 cents, in the year-ago period. During the quarter the company completed the sale-leaseback of the building that houses its Tokyo flagship for $328 million, which resulted in a gain of 48 cents a diluted share after tax.Sales for the quarter soared 18 percent to $627.3 million from $531.8 million, while total same-store sales jumped 8 percent domestically and 10 percent internationally.For the nine-month period earnings leapt 64 percent to $185.5 million, or $1.52 a diluted share, from $113.4 million, or 85 cents, last year. Sales climbed 18 percent to $1.89 billion from $1.60 billion."We are pleased with our overall businesses in the U.S. and internationally, as well as with product performance ranging from robust diamond jewelry sales to a healthy increase in silver jewelry sales," said Michael J. Kowalski, chairman and chief executive officer, in a statement. "We are now one month into the all-important November-December holiday season and are pleased with discount Tiffany Watches sales growth that is meeting our expectations. The vast majority of holiday season business is still ahead of us, so it is premature to extrapolate recent results or draw any conclusions about consumer spending."The company raised full-year guidance to a range of $2.25 to $2.30 a diluted share, from a prior outlook of $2.22 to $2.27 a diluted share.

On a conference call with analysts, Mark L. Aaron, vice president of investor relations, said U.S. retail sales increased 12 percent in the third quarter "largely driven by increased spending per transaction, as well as an increase in the number of transactions. An 8 percent increase in comp-store sales was in line with our high-single-digit expectation."Aaron went on to say that from a "price stratification viewpoint, there was price strata growth in a wide range, from under $500 to over $50,000, but the greatest percentage growth in sales and transactions was in the $4,000 to $50,000 range."Aaron said geographically, the U.S. was strong, with sales in the New York flagship rising "25 percent in the quarter on top of a 13 tiffany increase last year, and were up 28 percent year to datewith the increases coming from increased transactions and higher spending per transaction."LONDON-Less than a decade ago, Sierra Leone was a warravaged zone, and, as illustrated in last year's film Blood Diamond, conflict diamonds were very much entwined in the chaos of the country's late-1990s civil war.The nation is now at peace, though both the diamond industry and human rights organizations are still working to improve conditions for alluvial miners there.One sign of progress comes from Tiffany & Co., as well known in the industry for its stringent ethical policies as it is for its blue box. It is now investing in Target Resources, an alluvial diamond and gold mining company that operates in Sierra Leone. Target announced a $5 million exclusive marketing agreement with Tiffany in September.

The investment, still subject to final documentation, will be in the form of a five-year subordinated debt. Tiffany will have first right of refusal on Target's production at market price and can sell, on Target's behalf, diamonds it does not wish to keep.Wade Watson, president of Pride Diamonds, a wholly owned subsidiary of cheap Tiffany Bangles, says Tiffany is putting its money where its mouth is and that successful projects could benefit natives of Sierra Leone. Up until now, while companies have been able to raise money, they haven't been able to achieve major results in terms of exports, he says."We can create a lot of jobs, we can do community projects-that's top-line capital-but the real change comes from us actually succeeding," he says.Tiffany Chief Financial Officer James Fernandez said in a statement that the move is consistent with the company's policy of selectively investing in diamond miners who ethically mine high-quality stones.