Tiffany Says Quarterly Profit Down 34%

Tiffany & Co., stymied by sluggish demand for luxury goods, reported a 34% decline in third-quarter profit to $24.03 million, or 16 cents a share, but the results beat Wall Street’s reduced expectations of 13 cents.

The upscale jewelry retailer said sales fell 10% to $333.07 million, led by a 17% decline in U.S. sales. Worldwide sales at stores open at least a year were down 11%. Sales declines resulted from a smaller average transaction size, compounded by a reduction in store traffic since the attacks.

Chief Executive Michael J. Kowalski said he believes that a “challenging retail environment will persist through the first half of 2002.” But Tiffany still expects fourth-quarter profit to at least meet expectations.

Tiffany’s shares jumped $1.65, or 6%, to $28.35 on the Big Board.