By Aarthi Sivaraman
NEW YORK (Reuters) - The upcoming holiday season at upscale jeweler Tiffany & Co (TIF.N: Quote, Profile, Research, Stock Buzz) could be the beginning of renewed growth at its established U.S. stores, its chief executive told Reuters on Thursday.
Despite moderating sales expectations, Tiffany said it expects a “modest increase” in fourth-quarter same-store sales in the lackluster U.S. market.
##6## “That, perhaps, is the beginning of a return to greater consumer confidence that would build throughout 2009,” Chief Executive Michael Kowalski said in an interview after the company reported better-than-expected quarterly earnings.
Tiffany’s shares jumped nearly 11 percent.
“Part of our optimism is driven by favorable year-over-year comparisons,” he said. “I think probably more important is that we are very optimistic and confident in the new product lineup we have.”
Kowalski said the U.S. market was still the most cautious, with shoppers concerned about the economy. Aspirational consumers — those who buy under $500 — were under the most pressure, he said.
The company has also seen soft sales of jewelry priced above $50,000 — a sign that its most affluent customers are also thinking twice before spending.
Tiffany aims to entice customers within those extremes. For example, its new products will include pricier gold and platinum variations of its widely popular silver charms. Continued…
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