Tiffany 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Americas doing great. Gold jewelry especially, entry level silver still not so much

“Starting with the Americas region, total sales increased 10% in the quarter due to an overall increase in the average price per jewelry unit sold, reflecting price increases taken in the Americas and other regions as well, but also stronger demand for gold within the fashion jewelry category. It’s worth noting that there was healthy unit growth in most categories, but that was offset by continued unit declines in entry level price point silver jewelry.”

Strong macro environment for our core customers

“We attribute the healthy sales growth from the Americas to a range of factors, including more engaging selling initiatives and visual merchandizing in our stores, new products, compelling marketing, and what has been a favorable macro environment for our core customers.”

Asia pacific soft, but China still had double digit comp

“The Asia pacific region had its challenges in the quarter, starting with the difficult comparison to a 22% comp store sales increase last year, which at that time had been driven by broad based growth across the region, including some statement jewelry sales. It was a different picture in this third quarter, with double digit comp store sales growth in mainland China, offset by varying degrees of softness in other markets. We’d expected only modest comp growth in Asia Pacific in this third quarter.”

Sales growth in Japan is taking longer than expected

“I presume by now you’re all aware of the extreme volatility in consumer spending before and after an increase in Japan’s consumption tax on April 1st…The return to monthly sales growth is taking longer than anticipated and we believe softness is now being exacerbated by weakening economic conditions.”

Mainland Europe better than UK

“We saw quite a contrast in European sales results between the UK and the continent. All countries in which we operate stores in continental Europe, achieved varying degrees of comp store sales growth in local currencies tied to both local customer and foreign tourist spending. However, comps continued to decline in the UK, reflecting some softness in both customer categories.”