In Tiffany & Co. say that the company's revenue in the third quarter of 2014 increased by 5.3% compared to the third quarter of last year. The jewelry house managed to reduce the cost of goods sold by 0.8% to $ 388.7 million, but it lost $ 93.8 million due to early repayment of the debt. The company's profit fell 59.6% to $ 38.3 million, or 30 cents per share.
The value of inventory assets as of October 31 increased by 10% to $ 2.6 billion compared to last year. The gross profit ratio rose 59.5% in the third quarter, from 57% a year earlier, mainly due to a decrease in the cost of production along with a rise in prices for retail sales. Tiffany & Co. issued long-term debt of $ 550 million, most of which was directed to the payment of existing long-term debt obligations of $ 400 million, which resulted in the loss of the share price of 47 cents per share before tax. The total volume of short-term and long-term debt obligations of the company increased to $ 1.09 billion from $ 1.01 billion a year earlier.
Tiffany & Co. continues to follow the rate laid earlier for the current financial year, which ends on January 31, and expects profits in the region of $ 4.20 - $ 4.30 per share.
General Manager of the jewelry retailer Tiffany & Co. Michael Kowalski said: "We are satisfied with the overall sales figures, especially in light of the recent economic and political events that have taken place in the world. We continue to develop our capabilities in marketing, merchandising and expanding our network of salons in order to ensure the long-term growth of our company, and we are especially pleased with the first results that show the launch of the new Tiffany jewelry collection. "