Tiffany’s 2Q14 Earnings Call Notes

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

Strength in high end jewelry, weakness in entry level

“We were pleased to experience healthy unit growth in the statement, fine and solitaire jewelry category as well as in our engagement jewelry and wedding band category. And we’re pleased that fashion jewelry unit sales are benefiting from strength in gold jewelry.

However, continued softness in silver jewelry unit sale in particular entry level sales under $500 was the reason why we had no growth in total jewelry units in the Americas.”

Strong tourist sales and conditions strong for our customers in NA

“we benefited from foreign tourist spending that is likely tied to growing brand awareness globally and perhaps some currency fluctuation too. And of course, conditions in the U.S. are favorable for many of our customers.”

Japanese sales recovering more slowly than expected

“Now let’s turn to Japan where sales have been volatile to say the least in the first half of this year. As I alluded to in the overview after experiencing a surge in spending in the first quarter as Japanese consumers purchased in advance of a consumption tax increase on April 1. We anticipated a significant demand to offset in the second quarter, which occurred as we expected. The good news is that following a substantial sales decline in April, we saw a decelerating rate of sales decline in each months of the second quarter. However, the return to monthly sales growth is taking longer than we expected. Department stores in Japan have reported that they have also been experiencing sequentially smaller rates of sales declines in jewelry sales in the past several months.”