Leading US jeweller Tiffany & Co reported a 6 percent sales rise to $858.5 million for the fourth quarter, exceeding analysts’ expectations. However, net earnings plummeted 35.3 percent to $140.3 million (£80.8 million) from $217 million in the same period last year; in 2004 the company profited from a one-time $194 million gain from the sale of its stake in Aber Diamond Corp.

The jewellery retailer is continuing to expand with new stores openings, squashing rumours of a takeover. Last week, it said it would open two more stores in China, one in Beijing and one in Shanghai, where it already has one store each. There will also be two more stores openings in Japan, although five stores were closed in that country. Further stores openings are planned for Vancouver, Vienna, Macau, Monterey in Mexico, Tucson, Nashville, Indianapolis and Atlantic City.

Also in the pipeline are the expansion of Iridesse to 14 stores and the launch of six jewellery collections designed by Frank Gehry in select US and Japanese stores.

Chairman and chief executive Michael Kowalski said that in this year’s first quarter the company has realized “stronger-than-expected comparable-store sales growth in most international market, including double-digit growth in Japan.” Same-store sales in the US were “modestly below the prior year, reflecting a difficult year-over-year comparison.”

Global same-store sales rose 6 percent, with retail sales in the US increasing 8 percent to $449.3 million and same-store sales up 5 percent, thanks to higher spending per transaction. Meanwhile, full-year earnings dropped 16.3 percent from $304.3 million to $254.7 million. Annual revenues rose 8.6 percent to $2.4 billion.

Commenting on sales during a conference call with WWD, Tiffany’s vice president of investor relations, Mark Aaron, said, “There continued to be greater strength in higher price point jewellery. There was solid demand for diamond jewellery all year, ranging from rings to studs, pendants, bracelets and necklaces. Tiffany’s expanded colour diamond assortment is also attracting customers.”

However, same-store sales at the brand’s flagship store slipped two percent in the quarter. “The flagship’s performance was affected by lower foreign tourist spending in the fourth quarter, which more than offset higher sales to local resident customers,” said Aaron. Meanwhile, international sales rose 1 percent to $304 million, with same-store sales up 7 percent. Japan helped boost foreign sales with an 8 percent increase.

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