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Tiffany's Profits Drop in 2004.
Dow Jones reports today that while the net income at Tiffany & Co. nearly doubled in 2004 due to the company's sale of Aber Diamond Corp. shares, profit margins continued to shrink.
Higher inventory costs in the precious metals and diamonds accounted
for the shrinking profit margins.
Other factors affecting gross margins included a shift in sales toward higher-priced, lower-margin diamonds jewelry; weak sales in Japan; and import tariffs on products manufactured in the United States and shipped to Europe. Pearls were the one category that showed growth
and increasing profits.
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