Michael J. Kowalski, chairman and CEO, unveiled the concept at a breakfast meeting of security analysts and investors in the company's new Wall Street store. The new units will offer a wide range of jewelry designs except engagement jewelry.
"This new format has the potential to significantly accelerate US sales growth over the medium- to long-term and enhance profitability due to a merchandise mix weighted with higher-margin products," Kowalski said. Plans call for as many as 70 Collections stores in the US "as location opportunities arise," he says.
The first is scheduled to open in 2008, followed by additional openings "at the rate of three to five stores per year," said Beth O. Canavan, EVP, in a statement. No locations were identified, but Canavan said, "the location opportunities in existing and new markets are vast and geographically broad-based and add enormous potential and longevity to our store expansion strategy."
That strategy also calls for the addition of between five and seven Tiffany & Co. units, of approximately 5,000 sf, a year. Together, that "will increase total US store expansion to the rate of eight to 12 new stores per year," Canavan noted. The smaller stores "will reach out clearly to the self-purchase customer, with a selling environment that celebrates Tiffany style," she added.
Following the announcement, shares of TIF stock on the NYSE rose to $55.56 a share, up nearly 1.8% in early Oct. 18 trading. This compares with a 52-week high of $57.34 on Oct. 11 this year and a 52-week low of $34.71, which occurred on Nov. 3, 2006.
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