Colorful Louis Comfort Tiffany Antique Jewelry Suite Fetches $161,000 at Bonhams

Photo credit: image courtesy of Bonhams

A rare antique jewelry suite of sapphire, demantoid garnet and enamel attributed to Louis Comfort Tiffany sold for $161,000 (including premium), soaring past its high estimate at Bonhams Fine Jewelry auction in New York.

The suite, created for Tiffany & Co., circa 1920, is led by a pendant centered by an oval, irregularly-domed cabochon sapphire. It sits within a scrolling frame suspending a flexible swag, accented by circular and oval-cut demantoid garnets and sapphires, highlighted by enamel floral sprays and suspended from a chain of floral links. It is completed by a box clasp set with circular-cut sapphires, pendant earrings en suite; chain and pendant earrings.

Photo credit: image courtesy of Bonhams

The top lot of the evening was an 8.45-carat Cartier diamond ring (pictured above). The rectangular step-cut diamond within a pierced and openwork pavé-set diamond surround sold for $293,000. 

Despite being the top lot, the diamond ring must have felt a bit lonely at the sale dominated by rare sapphires, emeralds and other colored gems. As a signed piece, it was among many that were in high demand at the December 8 sale, which realized $4.1 million. 

“More contemporary signed jewels continue to thrive in the auction environment,” said Susan Abeles, VP and director of the Jewelry at Bonhams North America, “The sale was dominated by colorful estate property which was well received by an international audience.”

Other highlights of the sale include:

Photo credit: image courtesy of Bonhams

* A 3.2-carat Kashmir sapphire and diamond ring that fetched $118,750, almost twice the high estimate.

Photo credit: image courtesy of Bonhams

* A sapphire and diamond brooch with a diamond weight of 6.85 carats, which realized $112,500, nine times the high estimate.  

Photo credit: image courtesy of Bonhams

* A Colombian emerald and diamond ring, featuring a large emerald cabochon weighing approximately 50 carats surrounded by diamonds. It achieved $106,250, over 3.5 times the high estimate.

* A late Art Deco ruby and diamond bracelet, circa 1935, with a total diamond weight of 14.00 carats, which sold for $106,250, well past its high estimate.

* Natural button pearl diamond ear studs, each over 10mm, realizing $45,000, close to 6.5 times its high estimate. 

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Tiffany & Co. to Open Flagship Paris Store on Champs Elysées

Rendering of Tiffany's planned store in Paris.

Tiffany & Co. said Tuesday that it plans to open a new European flagship store in Paris. The 10,000-square-foot, multi-level store will be located at 62, Avenue des Champs Elysées and is expected to open in 2014.

"This is a significant development and sales opportunity for Tiffany & Co. While we have been successful in operating three smaller stores in Paris, establishing this store on the Champs Elysées will be the ultimate symbol of Tiffany as a truly global luxury brand," said Frederic Cumenal, executive vice president, Tiffany & Co. "This is a preeminent location that firmly places Tiffany & Co. on an international stage, in the heart of a city where people from all over the world come to visit and shop."

The opening on the Champs Elysées will mark a new milestone in Tiffany's connection to Paris, which began in 1850 when the company established its first store. In 1999, Tiffany returned to Paris with a store on rue de la Paix.

In March, the owner of the rue de la Paix building that housed Tiffany’s Paris store, placed the property for sale. 

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Christie's Geneva Auction to Include Private Jewelry Collection

Ruby and diamond jewelry set mounted by Cartier.

A highlight of Christie’s Geneva Magnificent Jewels auction on November 16 is a sale of an “extraordinary” group of jewels from a private collection.

Harry Winston

“Timeless Elegance – Important Jewels from the Collection of a European Family,” has 67 jewels gathered together in the mid-20th Century, bearing the style and signature of some of the most talented jewelry houses during the period, including Boucheron, Cartier, Mauboussin, Ostertag, Tiffany & Co, Van Cleef & Arpels and Harry Winston. The family that owns the collection isn’t identified.

The collection, featured in a separate catalog, will be sold at 3 p.m.

“During my entire career I have never been asked to sell a group of jewels of such variety and outstanding beauty,” said Jean-Marc Lunel, Head of Christie’s Geneva Jewellery Department. “(It) will, no doubt, be among the very highlights of this auction season in Geneva. Unquestionable quality is behind every piece, each of them is a work of art in its own right.”

Diamond flower brooch by Van Cleef & Arpels.

Dating from the early 1900s to the present day, the collection contains all of the major periods and styles of the 20th Century, covering every type of jewel and gemstone.

Highlights from the collection include a timeless diamond necklace by Harry Winston from 1964 (estimate: $1.5 million – $2.5 million), a set of ruby and diamond jewelry, mounted by Cartier in 1951 ($800,000 – $1.2 million) and a mystery-set ruby and diamond flower brooch by Van Cleef & Arpels (estimate: $300,000 – $500,000).

Belle Epoque emerald and diamond brooches.

Among the period highlights are an Art Deco diamond, emerald and onyx bracelet by Gattle (estimate: $ 200,000 – 300,000) and a pair of Belle Epoque emerald and diamond brooches (estimate: $ 200,000 – $240,000).

Art Deco diamond, emerald and onyx bracelet by Gattle.

Tiffany Promotes Senior Executives

Frederic Cumenal

Beth Canavan

Tiffany & Co. said Wednesday that it is shifting and expanding responsibilities for two executive vice presidents, Beth Canavan and Frederic Cumenal.

Cumenal, 53, joined the international luxury jewelry retailer in March 2011 from the LVMH Group. He has been responsible for Tiffany's businesses in Asia, Japan, Europe and Emerging Markets. Effective immediately, Cumenal will expand his role to assume responsibility for all of Tiffany's worldwide sales activities.

Canavan, 58, joined Tiffany in 1987 and through progressively greater responsibilities has headed the Americas region in recent years. She will now report to Cumenal who reports to Michael J. Kowalski, Tiffany's chairman and chief executive officer.

Frederic Cumenal Named President of Tiffany & Co.

Frederic Cumenal

Tiffany & Co. said Tuesday that it has named Frederic Cumenal as president and also appointed him to a newly-created seat on the company’s board of directors.

Cumenal, who was executive vice president responsible for international retail, joined the luxury retail jeweler in March 2011 as executive vice president with oversight for the Asia-Pacific, Japan, Europe and emerging markets. In 2012, the Americas region was added.

Prior to joining Tiffany he held senior leadership positions at LVMH Group, most recently as president and chief executive officer of Moët & Chandon.

“Frederic has made important contributions to the operational and strategic development of our business,” said Michael J. Kowalski, Tiffany chairman and CEO. “He has brought a global luxury perspective to our brand management initiatives and, in particular, has led the evolution of our regional organizations to support our continued worldwide expansion.”

In his new role, Cumenal, 54, will retain his regional responsibilities and will assume responsibility for Tiffany’s  design, merchandising and marketing functions. He will continue to report directly to Kowalski.

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Gem Diamonds, Tiffany Agree to 25% Price Hike for Fancy Yellow Diamonds

Ellendale mine site

Diamond mining company Gem Diamonds Ltd. said Wednesday that it has negotiated a deal with Laurelton Diamonds, Inc., for a 25 percent price increase for the exclusive assortment of rare fancy yellow diamonds from Kimberley Diamond Company’s Ellendale mine in Western Australia. This price increase will come into effect October 1 and will last through the lifespan of the mine.

Laurelton Diamonds is the diamond sourcing and polishing subsidiary of luxury retail jeweler, Tiffany & Co. Gem Diamonds is a wholly owned subsidiary of Kimberley Diamond Company NL.

Tiffany first launched its Yellow Diamond Collection in Japan in April 2010. The company then launched the collection in the U.S. market during Fashion's Night Out, held September 10, at its flagship store on New York's 5th Avenue.

“The Ellendale Mine in Australia is the world's single largest producer of rare fancy yellow diamonds,” said Clifford Elphick, Gem Diamonds CEO. “The long-term agreement with Tiffany & Co., spanning the economic life of the Ellendale mine, continues to provide a sustainable platform for Kimberley Diamonds’ mining operation. This shows the benefits of partnering with such a highly regarded brand and major player in the diamond jewelry and retail sector.”

You may have remembered that Gem Diamonds was recently in the news for unearthing a 196-ct. rough white diamond from its Letšeng mine in the South African country of Lesotho in late August.

LVMH is the Best Global Luxury Brand

Despite the economic downturn, several luxury companies were able to increase the value of their brands in 2010, according to the 11th annual ranking of the "Best Global Brands," by Interbrand, a global brand consulting firm.

Among luxury brands, LVMH ranked the highest on the list at 16th, followed by Gucci (44), Hermes (69), Tiffany & Co (76), Cartier (77), Armani (95). All of these brands saw growth this year because they continued to invest “in their heritage and legendary status,” Interbrand said in a statement. “Outstanding customer service and a focus on unique in-store and online experiences allowed them to stay strong, even while consumers cut back spending.”

Burberry, which ranks 100 on the list, saw no change in its brand value this year.

For the 11th year straight, Coca-Cola retains its top spot as the number one ranked brand on the list. But the bigger story is the growth of technology brands, with IBM (2), Microsoft (3), Google (4), Intel (7), HP (10), Apple (17) and BlackBerry (54).

Apple increased brand value 37 percent “through carefully controlled messaging and an endless wave of buzz surrounding new product launches,” Interbrand said. Google saw a 36 percent increase in value over last year, “bringing the brand closer than ever to rival Microsoft.” Meanwhile, HP, despite a challenging year, “made smart additions to its product portfolio and swiftly expanded the HP brand to protect its ranking on the list. BlackBerry’s brand value grew 32 percent and it remains “the most popular smartphone for business users, despite pressure from Apple as it edges into the corporate world.”

A number of prominent brands faced extraordinary crisis in 2010 resulting in stalled growth, value loss and in the case of BP, failure to make the ranking this year. BP's environmental disaster and inability to make good on its brand promise of "Beyond Petroleum" led to it falling off of the list and helped competitor Shell emerge as an industry leader, now ranked number 81, up from number 92 in 2009. Although the Toyota (11) recall caused the brand to lose -16 percent of its brand value, its long-standing reputation for reliability, efficiency and innovation helped it weather the crisis better than expected. Goldman Sachs (37) was once the envy of Wall Street, but now faces the dichotomy of strong economic results and an angry public that will continue to lash out until the company begins to demonstrate that it is making sincere efforts to better align its ethics with its brand.

During a difficult year for the auto industry, Mercedes Benz (#12) and BMW (#15) were able to sustain and build their value through innovative design and a focus on delivering premium value vehicles with luxury features. Using customer feedback, largely drawn from YouTube, Flickr, Twitter and Facebook to launch the 2009 Fiesta, Ford (50) stands out as one of the best example of how to use social media. Award-winning products like the Q5 and rich heritage help Audi (63) lead industry growth this year with a 9% increase in its brand value.

"2010 was the beginning of a long road back towards economic recovery," said Jez Frampton, group chief executive at Interbrand. "From real-time customer feedback through social media to increased transparency about corporate citizenship, brands were faced with a profound change in the way they relate to customers and demonstrate their relevance and value. Despite this new paradigm of brand management, the advantages of building a solid brand remain the same."

In the financial sector, legacy brands Citi (40) and UBS (86) lost double-digits in brand value, while Santander (68), Barclays (74) and Credit Suisse (80) made their debut on the list for the first time. “Their ability to stay true to brand promises in unsure times, and avoidance of the subprime mortgage crisis, helped them stay the course, Interbrand said.

Interbrand publishes the ranking of the top 100 brands based by analyzing the many ways a brand touches and benefits an organization, from attracting top talent to delivering on customer expectation. Three key aspects contribute to a brand's value; the financial performance of the branded products or services, the role of a brand in the purchase-decision process and the strength of the brand to continue to secure earnings for the company.

Former Tiffany VP Pleads Guilty to Stealing $2.1 Million of Jewelry

Ingrid Lederhaas-Okun

A former VP of Product Development at Tiffany & Co., pled guilty Friday in Manhattan federal court to stealing over $2.1 million worth of jewelry from her former employer.

Ingrid Lederhaas-Okun, 46, of Darien, Conn., pled guilty to one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison. As part of her plea agreement, she agreed to forfeit more than $2.1 million and further agreed to make restitution in the amount of more than $2.2 million, according to a statement from the US attorney’s office for the Southern District of New York.

She was arrested earlier this month and pled guilty Friday before U.S. District Judge Paul G. Gardephe. She is scheduled to be sentenced by Judge Gardephe on December 10.

“Over a period of years, Ingrid Lederhaas-Okun, an executive at a high-end jewelry company, looted her employer’s jewelry inventory and then resold millions of dollars’ worth of the merchandise in order to enrich herself,” Manhattan U.S. Attorney Preet Bharara said Friday. Today, she stands convicted for her thievery and faces the prospect of prison.”

From at least January 2011 until February 2013, Lederhaas-Okun worked as a VP of Product Development at Tiffany’s midtown Manhattan headquarters, according to court documents. Her duties and responsibilities included ensuring that product designs could be manufactured. She had authority to check out jewelry belonging to Tiffany for work-related reasons.

Between November 2012 and February 2013, Lederhaas-Okun checked out more than 165 pieces of jewelry with a retail value of more than $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants,” according to court documents. She then sold some if not all of this jewelry for $1.3 million to an unnamed international buyer and reseller of jewelry in midtown Manhattan. The jewelry reseller paid for the stolen merchandise by paying Lederhaas-Okun or her husband, in transactions arranged either by her or a friend working on her behalf.

It is unclear whether this reseller knew the jewelry was stolen.

In addition, on November 2012, following an announcement by Tiffany that it was going to undertake a full physical inventory review, Lederhaas-Okun said that approximately $1.5 million worth of jewelry which she had checked out would have to be written off, according to court documents. However, none of that jewelry was ever returned to Tiffany, contrary to the usual practice of accounting for inventory, such as damaged jewelry, that would have to be written off because it had been rendered unusable in some way.

To conceal her theft, Lederhaas-Okun made repeated false statements to Tiffany. For example, after her termination in February 2013, she told the luxury jeweler that she had recently checked out jewelry to create a PowerPoint presentation for her supervisor, and that a draft of the presentation could be found on her office computer. However, the missing pieces of jewelry had been checked out months earlier, her supervisor was unaware of any such presentation and there was no draft presentation on her computer. In addition, she claimed the jewelry could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any white envelope.

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Tiffany Q1 Sales Up 20%, Profits Up 26%

Tiffany & Co. on Thursday reported that worldwide net sales increased 20 percent to $761 million while net earnings rose 26 percent to $81.1 million due to sales growth and improved margins. Management increased its earnings forecast for fiscal 2011 based on this higher than expected performance.

“We are pleased with the very strong start to the year,” Michael J. Kowalski, Tiffany chairman and CEO, said in a statement. “We achieved healthy sales growth in most regions, were able to improve gross margin despite higher product costs and achieved a significant increase in our operating margin.”

On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales increased 16 percent and 15 percent, respectively, the New York-based luxury jewelry retailer said.

Net sales highlights by region for the quarter ended April 30 are as follows:

* In the Americas, which includes the U.S., Canada and Latin America, sales increased 19 percent to $374.7 million. On a constant-exchange-rate basis, total sales and comparable store sales rose 18 percent and 17 percent, respectively. Comparable Americas' branch store sales increased 15 percent and sales in the New York flagship store rose 23 percent. Combined Internet and catalog sales in the Americas rose 14 percent.

* Asia-Pacific sales increased 37 percent to $167.2 million. On a constant-exchange-rate basis, sales increased 31 percent and comparable store sales rose 26 percent due to substantial growth in most countries, particularly in the greater China region.

* Sales in Japan rose 7 percent to $123.4 million. On a constant-exchange-rate basis, both total sales and comparable store sales declined 3 percent. Stores that had closed due to the earthquake have since re-opened. Comparable store sales on a constant-exchange-rate basis increased in February, declined in March and rose in April.

* In Europe, sales increased 25 percent to $85.6 million. On a constant-exchange-rate basis, sales increased 19 percent while comparable store sales rose 15 percent due to strong growth in Continental Europe and modest sales growth in the U.K.

* Other sales declined 18 percent to $10.1 million. A decline in wholesale sales of rough diamonds more than offset increased wholesale sales of finished products to independent distributors within emerging markets.

The company currently operates 232 stores (96 in the Americas, 55 in Japan, 52 in Asia-Pacific and 29 in Europe), versus 221 a year ago.

Tifffany plans to open 19 new stores this year with—seven in the Americas, four in Europe and eight in Asia-Pacific, while closing a store in Japan.

“Worldwide sales growth in the early part of this second quarter is continuing to exceed our expectation, with solid performance in most regions,” Kowalski said. “Based on the better-than-expected first quarter results, we are increasing our earnings forecast for the year to $3.45 - $3.55 per diluted share (not including nonrecurring expenses) from $3.35 - $3.45 per diluted share previously.”

The company said that for the year, ended Jan. 31, 2012, it expects a net earnings increase of 18 percent.

It forecasts a mid-teens percentage increase in worldwide net sales. By region, it expects a mid-teens percentage increase in sales in the Americas, a mid-twenties percentage increase in both Asia-Pacific and Europe, and a modest sales decline in Japan.

Tiffany Reports Q1 Sales Up 13%, Comps Up 11%

Tiffany Butterfly Tiara from the Blue Book Collection. Pink spinels and round brilliant diamonds adorn an exquisitely handcrafted platinum tiara in a butterfly motif. Carat total weight: round brilliant diamonds, 19.97; pink spinels, 10.98; marquise diamonds,  0.73. $150,000.

Tiffany & Co. said Wednesday that worldwide net sales in the first quarter increased 13 percent, year-over-year, to $1 billion led by strong results in nearly all regions and product categories. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars worldwide net sales rose 15 percent and comparable store sales rose 11 percent due to growth in most regions.

The luxury retailer known for its diamond, gem, gold and silver jewelry said the spike in sales was combined with an improved operating margin, resulting in a growth in net earnings to $126 million, or $0.97 per diluted share, from $84 million, or $0.65 per diluted share.

The New York-based luxury jewelry retailer also increased its earnings forecast for the current fiscal year.

Sales by region are as follows:

In the Americas, total sales increased 8 percent to $439 million. On a constant-exchange-rate basis, total sales rose 9 percent and comparable store sales rose 8 percent, primarily due to geographically broad-based growth across the U.S.

In Asia-Pacific, total sales rose 17 percent to $261 million. On a constant-exchange-rate basis, total sales increased 19 percent and comparable store sales rose 10 percent with noteworthy growth throughout Greater China and in Australia.

In Japan, total sales surged 20 percent to $174 million. On a constant-exchange-rate basis eliminating the negative effect of a weaker yen versus the U.S. dollar, total sales and comparable store sales rose 29 percent and 30 percent. 

In Europe, total sales rose 9 percent to $101 million. On a constant-exchange-rate basis, total sales rose 2 percent and comparable store sales declined 3 percent. Trends were similar in the U.K. and in continental Europe.

Other sales increased 39 percent to $37 million, primarily due to retail sales growth which included 18 percent comparable store sales growth in the United Arab Emirates and the opening of the first company-operated Tiffany & Co. store in Russia. Other sales also benefited from an increase in wholesale sales of diamonds; such diamonds are a result of the company's rough diamond sourcing operations.

“This is an excellent and encouraging start to the year,” said Michael J. Kowalski, Tiffany chairman and CEO. “We were pleased with the strong and broad-based sales growth across most regions and product categories and our ability to leverage those improved sales into very significant growth in operating and net earnings. Strength in fine and statement jewelry sales continued, while sales of our new or expanded jewelry collections accelerated, led by our ATLAS collection."

Based on the results, Tiffany increased its earnings forecast for the fiscal year ending January 31, 2015, to a range of $4.15-$4.25 per diluted share, versus its previously-published forecast of $4.05-$4.15 per diluted share.

Tiffany opened four stores in the first quarter (including a store on the Champs Elysees in Paris) and closed one in the US. The company now operates 292 stores (121 in the Americas, 72 in Asia-Pacific, 55 in Japan, 38 in Europe, five in the U.A.E. and one in Russia), versus 275 stores a year ago.

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44-Ct. ‘Perfect Diamond’ Up for Auction at Christie’s

'The Perfect Diamond,' a 44.09-Carat rectangular-cut diamond ring; D-color, internally flawless clarity, Type IIa, excellent polish and excellent symmetry; Estimate on request.  Photo Credit: CHRISTIE'S IMAGES LTD. 2012

Christie’s New York will hold its Magnificent Jewels auction on April 17 at its Rockefeller Center headquarters. The sale features more than 300 individual jewels, including top-quality diamonds, gemstones, natural pearls and signed pieces, with estimates ranging from $2,000 to $8 million. The total sale is expected to surpass $40 million.

16.33-Ct., pear-shaped diamond ring by Van Cleef & Arpels; D-color, potentially internally flawless clarity, Type IIa; Estimate, $1.85 million - $2.5 million. Photo Credit: CHRISTIE'S IMAGES LTD. 2012

The sale features no less than 10 top-quality D-color diamonds. The assortment is led by what is known as “The Perfect Diamond,” (top photo) a 44.09 carat D-color internally flawless, emerald cut diamond (estimate upon request). Christie’s says the diamond exhibits excellent polish and symmetry with no fluorescence. It is certified as a type IIa diamond, the most chemically pure classification prized for its exceptional optical clarity.

15.08-Ct. oval-cut diamond ring; F-color, internally flawless clarity, Type IIa; Estimate, $1.25 million - $1.55 million. Photo credit: CHRISTIE'S IMAGES LTD. 2012

Also among the top lots of the evening, as previously reported, are “The Clark Pink,” an extremely rare 9-carat pink diamond ring, and The Clark Diamond, a 20-carat D-color diamond ring. Both items are part of the sale from the estate of Huguette M. Clark, one of the last heiresses of America’s Gilded Age. Ms. Clark’s personal jewelry collection, which is believed to have been stored in a bank vault since the 1940s, includes signed Art Deco jewels by Cartier, Dreicer & Co. and Tiffany & Co. The complete collection of 17 jewels is expected to fetch up to $12 million.

A Colored Diamond Necklace, by Graff; Estimate $1.5 million - $2.5 million. Photo credit: CHRISTIE'S IMAGES LTD. 2012

The sale also includes a selection of signed jewels from the Estate of Lucille E. Davison, a prominent collector, philanthropist and long-time trustee of Saint Anselm College in New Hampshire. Her jewelry collection includes more than 40 signed jewels that represent the best in modern design, including several “mystery set” jewels by Van Cleef & Arpels, and a selection of bracelets and brooches conceived by the legendary designer Jean Schlumberger for Tiffany & Co. The total collection is estimated to reach $1 million. 

Cushion-cut Colombian emerald ear pendants of 26.03 and 25.32 cts. $1 million - $1.5 million. Photo credit: CHRISTIE'S IMAGES LTD. 2012

The April 17 sale is the first jewelry auction since the record-breaking $137.2 million jewelry sale of The Collection of Elizabeth Taylor in December—which served as the final note on a record $600 million in jewelry sales worldwide for the auction house that was “shaped by continuing demand for top colored and colorless diamonds with exceptional provenance,” said Rahul Kadakia, Head of Jewelry at Christie’s New York.

View all the major sale items by following this link.

From the Estate of Lucille E. Davison, a 'Mystery-Set' ruby and diamond “Pavot” flower brooch by Van Cleef & Arpels; Estimate $60,000 – 80,000. Photo credit: CHRISTIE'S IMAGES LTD. 2012

Tiffany's Soft Q4 Doesn't Tarnish Sparkling Year

Tiffany & Co. said Tuesday that worldwide net sales for the fourth quarter increased 8 percent, year-over-year, to $1.2 billion. On a constant-exchange-rate basis, worldwide net sales rose 7 percent and comparable store sales rose 5 percent.

Net earnings declined 2 percent for the period, ended January 31, to $178 million, due to higher costs.

Meanwhile, worldwide net sales for fiscal 2011 rose 18 percent to $3.6 billion. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales rose 15 percent and 13 percent, respectively.

Net earnings increased 19 percent to $439 million. Net earnings increased 24 percent excluding nonrecurring items, including the recent move of Tiffany’s headquarters staff in New York. Net earnings as a percentage of net sales rose to 12.1 percent, from 11.9 percent in the prior year.

“Tiffany exceeded the goals that we had set at the start of 2011 for both sales and earnings growth, although we concluded the year with softer-than-expected results,” said Michael J. Kowalski, Tiffany chairman and chief executive officer.

In its outlook for 2012, Tiffany said it expects worldwide net sales to increase by approximately 10 percent, primarily driven by sales growth in Asia-Pacific and the Americas. The New York-based company plans to open 24 stores in 2012—nine in the Americas, seven in Asia-Pacific, three in Europe—while beginning the operation of five stores in the United Arab Emirates.

The luxury retail jeweler reported annual double-digit growth in all regions. Unsurprisingly, the Asia-Pacific region reported the strongest growth.

Sales by region are as follows:

* In the Americas, sales increased 15 percent to $1.8 billion in fiscal 2011 and rose 5 percent to $605 million in the fourth quarter. On a constant-exchange-rate basis, total Americas sales rose 14 percent in fiscal 2011 and 5 percent in the fourth quarter, largely due to comparable store sales increasing 13 percent in the year and 3 percent in the fourth quarter. On that basis, comparable branch store sales in the Americas increased 11 percent in the year and 3 percent in the fourth quarter, while sales in the New York flagship store increased 20 percent for the year and 2 percent in the fourth quarter. Combined Internet and catalog sales in the Americas rose 6 percent in fiscal 2011 and declined 4 percent in the fourth quarter.

* In Asia-Pacific, sales rose 36 percent to $748 million in the full year and increased 19 percent to $225 million in the fourth quarter. On a constant-exchange-rate basis, total sales and comparable store sales rose 31 percent and 27 percent, respectively, in the year, and rose 18 percent and 13 percent in the fourth quarter, due to increased sales in most countries.

* In Japan, sales increased 13 percent to $617 million in fiscal 2011 and rose 12 percent to $204 million in the fourth quarter. On a constant-exchange-rate basis, total sales in Japan rose 3 percent in the year and 5 percent in the fourth quarter and comparable store sales increased 4 percent in both periods.

* In Europe, sales increased 17 percent to $421 million in the fiscal year and 3 percent to $142 million in the fourth quarter. On a constant-exchange-rate basis, total sales in Europe rose 12 percent in the year and 3 percent in the fourth quarter while comparable store sales increased 6 percent in the year and declined 2 percent in the fourth quarter. Throughout the fourth quarter and year, sales growth in Continental Europe was relatively stronger than results in the U.K., the company said.

Tiffany currently operates about 247 stores (102 in the Americas, 58 in Asia-Pacific, 55 in Japan and 32 in Europe.

Other sales declined 5 percent to $51 million in the fiscal year and fell 22 percent to $12 million in the fourth quarter due to declines in wholesale sales of rough diamonds in both periods as well as lower wholesale sales of finished products to independent distributors in the fourth quarter.

Other financial highlights:

* Gross margin (gross profit as a percentage of net sales) of 59.0% in the fiscal year compared with 59.1% a year ago, reflecting both higher product costs and shifts in product sales mix toward higher-priced jewelry that achieves a lower gross margin being largely offset by sales leverage on fixed costs. Gross margin in the fourth quarter was 60.4 percent, versus 60.9 percent in the prior year for generally similar reasons except for a lack of sales leverage on fixed costs.

* SG&A (selling, general and administrative) expenses increased 18 percent in the fiscal year and 10 percent in the fourth quarter, with both increases affected by nonrecurring costs related to the relocation of Tiffany's New York headquarters staff. Excluding the nonrecurring costs in all periods, SG&A expenses rose 16 percent in the fiscal year and 11 percent in the fourth quarter primarily due to increased store occupancy, labor and marketing costs.

* The company repurchased approximately 2.6 million shares of its Common Stock in the fiscal year at a total cost of $174 million, or an average cost of $66.23 per share. In the fourth quarter, the Company spent $35 million to repurchase approximately 525,000 shares at an average cost of $67.26 per share. At January 31, 2012 approximately $218 million was available for future repurchases under the currently authorized plan which expires in January 2013.

Golden Globe Awards Red Carpet Jewelry Fashion, Part 4

Angelina Jolie in Robert Procop emerald earrings.

Kelly Osbourne in 18K matching white gold black geode and black diamond ring and earrings designed by Kimberly McDonald.

 

Olivia Wilde wears a Tiffany ring and clutch by Judith Leiber.

Mila Kunis in Lorraine Schwartz jewelry, including gold bracelet

Golden Globe Awards Red Carpet Jewelry Fashion

Natalie Portman wearing a platinum and diamond necklace, and platinum and diamond stud earrings by Tiffany & Co.

Halle Berry wearing platinum and diamond stud earrings (3.03 carats), and five platinum and diamond bracelets by Harry Winston.

Jennifer Lopez in platinum and diamond cluster earrings, platinum and diamond hair pin, platinum and diamond cuff, and a platinum and diamond ring (7.06 carats) by Harry Winston.

Scarlett Johansson wears a platinum and diamond bracelet from 1920 (22.48 carats), platinum and diamond bracelet from 1930, platinum and diamond hair clips from 1934, and platinum and diamond stud earrings by Van Cleef & Arpels.

Eva Longoria wears platinum and diamond brooches, and platinum and diamond stud earrings (5 carats) by Neil Lane.

January Jones in platinum and diamond earrings (7 carats), and platinum and diamond bracelets by Neil Lane.

Catherine Zeta Jones in platinum and diamond earrings (26.8 carats), platinum and diamond bracelet (14.87 carats), and a platinum and diamond ring (7.2 carats) by Van Cleef & Arpels.

Michelle William in vintage platinum and diamond stud earrings by Fred Leighton.

Tiffany President to Resign in 2012

Tiffany & Co. said Wednesday that James E. Quinn will retire in early 2012. Quinn, 58, joined Tiffany in 1986 and has served as president since 2003, responsible for the Company's sales outside the Americas.

Quinn oversees international retail sales in Tiffany stores worldwide, with responsibility for the company’s global expansion strategy, including such notable store openings as the Tiffany store in Beijing, China, in 2002.

“Jim's contributions to Tiffany over his long and illustrious career have been enormous,” said Michael J. Kowalski, chairman and CEO. “In particular, his leadership of the global expansion of the Tiffany & Co. brand has been transformative for the company. Over the past 25 years, few have contributed as much to Tiffany as Jim.”

Tiffany said it has commissioned a search for a senior executive to assume Quinn’s responsibilities for the Asia-Pacific, Japan and Europe regions as well as emerging markets. This individual will report directly to Kowalski as an executive vice president.

From 1992 to 1998 Quinn served as executive vice president, followed by an appointment to vice chairman, a position he held until his appointment as president. He also serves on the board of The Tiffany & Co. Foundation, established in 2000, which supports nonprofit organizations dedicated to the preservation of the arts and environmental conservation.

Prior to joining Tiffany in 1986, Quinn held several financial management positions in the banking field. He earned a bachelor’s degree in communications from Hofstra University and a master’s degree in business administration from Pace University.

An active participant in business and civic organizations, Quinn serves on the board of directors of BNY Hamilton Funds Inc. and Mutual of America Capital Management. He is also chairman of the Fifth Avenue Association, a trustee of the Museum of the City of New York, and serves as chairman of the North American Advisory Board for the University College Dublin, Smurfit School.

2013 Holiday Sales Mostly Positive at Tiffany, Signet, Zale Corp.

The three largest jewelry retailers performed well enough during what was described as a challenging holiday sales period. 

Signet Jewelers, Tiffany & Co. and Zale Corp. experienced a November-December sales period that saw more competition for fewer shoppers. However, each company employed strategies that allowed them to make the most of the holiday season. 


Signet Jewelers
The largest specialty retailer in the US and UK, said that its US sales increased 7.9 percent year-over-year for the eight-week period ended December 28 to $1.07 billion. Same store sales for the period rose by 4.9 percent. However, the company did note that “additional discounting was necessary” in a competitive environment.

Sales at Kay Jewelers and Jared The Galleria Of Jewelry, its largest retail chains, rose 8.9 percent to $674.8 and 11.6 percent to $312.5 million, respectively, while sales at its regional brands fell 9.2 percent to $85.4 million.

Same store sales at Kay and Jared both increased 5.6 percent, while its regional brand holdings fell 2.3 percent for the period. 

“The US holiday season was highlighted by a strong November and a strong finish to December,” said Mike Barnes, Signet CEO. “However, additional discounting was necessary in a highly promotional retail environment that included challenging customer traffic trends and lower than anticipated commodity cost savings. We believe these factors will result in lower than expected gross margins and profitability versus our original expectations.”

In Signet’s UK division, which accounts for 19 percent of the company’s total revenues, sales for the eight-week holiday period increased 6.6 percent to $203.6 million year-over-year. Same store sales in the UK were up 5.2 percent.

Overall sales for Signet Jewelers In the eight-week period ended December 28, increased 7.7 percent to $1.27 billion. Same store sales increased 5 percent “driven by balanced strength across a variety of brands and categories.” 

Signet operates more than 1,400 stores in the US and 500 stores in the UK.

In addition, consolidated eCommerce sales increased 27.2 percent for the period, with a 24.8 percent increase in the US and a 37.5 percent increase in the UK.


Tiffany & Co.
The international luxury retail jeweler said Friday that total sales in the Americas region (which largely reflects US sales) rose 6 percent to $550 million for the holiday period ended December 31. On a constant-exchange-rate basis, total sales increased 7 percent while same store sales rose 7 percent due to what the company describes as “broad-based sales growth across most of the region.” The company operates 121 stores in the Americas.

The company reported that worldwide net sales for the period rose 4 percent to $1.03 billion. On a constant-exchange-rate basis worldwide net sales increased 8 percent due to growth in all regions. Same store sales increased 6 percent. 

“Tiffany enjoyed a good holiday season with overall sales results in line with our expectation, and we were pleased to see growth across our fine and statement, engagement and fashion jewelry categories,” said Michael J. Kowalski, Tiffany chairman and CEO.


Zale Corp.
Meanwhile, Zale Corp. reported same store sales for the holiday period increased 2 percent at constant exchange rates, or 0.7 percent on a US dollar reported basis led by a 3.5 percent rise in US same-store sales. 

Overall, the specialty retailer reported a 2 percent drop in holiday sales to $556 million, saying it is due to a closing of 91 stores during the year and a decline in the Canadian exchange rate. 

The Dallas-based company currently operates 1,064 fine jewelry stores and 630 kiosks in the United States, Canada and Puerto Rico, with the US being, by far, its largest market. 

The company’s US fine jewelry brands, consisting of Zales Jewelers, Zales Outlet and Gordon’s Jewelers, posted a same store sales increase of 3.5 percent. This increase follows a 2.2 percent rise in the same period last year.

Canadian fine jewelry brands, consisting of Peoples Jewellers and Mappins Jewellers, posted a same store sales increase of 0.5 percent at constant exchange rates, following a decline of 0.7 percent in the same period last year. On a US dollar reported basis, same store sales decreased 5.9 percent, following a 2.7 percent increase in the same period last year.

Piercing Pagoda, Zale Corp.’s kiosk jewelry business, posted a same store sales decline of 5.1 percent. In the same period last year, same store sales rose 1.7 percent.

“During the holiday period, we maintained our focus on increasing exclusive product penetration, driving gross margin improvement and building our core national brands,” said Theo Killion, Zale Corp. CEO. “We executed a solid holiday season despite a challenging retail environment.”

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