A TALE OF TWO CLIMATES
Decades of research have demonstrated the impact of organizational climate on important business outcomes (e.g., Borucki & Burke, 1999; Collins & Smith, 2006; Schneider, Ehrhart, Mayer, Saltz, & Niles-Jolly, 2005; Schneider, Partington, & Buxton, 1980; Schneider, White, & Paul, 1998). Climate, defined as "incumbents' perceptions of the events, prac- tices, and procedures and the kinds of behaviors that get rewarded, sup- ported, and expected in a setting" (Schneider, 1990, pg. 384), serves a directive function by channeling employee behaviors toward achieving critical organizational objectives. Accordingly, firms may enact policies and procedures designed to emphasize particular strategic objectives or foci (Reichers & Schneider, 1990). The results of this process are specific climate referents geared to initiatives such as innovation (Baer & Frese, 2003), safety (Zohar, 2000; Zohar & Luria, 2005), service (Schneider et al., 1980, 1998, 2005), autonomy (Patterson, Warr, & West, 2004; Patterson et al., 2005), cooperation (Collins & Smith, 2006), and trust (Collins & Smith, 2006), which predict organizational performance.
This investigation seeks to extend this line of specific climate research by focusing upon diversity as the referent of firm interest. Diversity climate is employees' shared perceptions of the degree to which a firm is thought to utilize fair employee policies and socially integrate underrepresented employees into the work setting (Mor Barak, Cherin, & Berkman, 1998). This concept is important in light of evidence suggesting that many employees from underrepresented groups (e.g., minorities, women) commonly feel marginalized, excluded, or discriminated against (Blank & Slipp, 1994; Goldman, Gutek, Stein, & Lewis, 2006), which limits their motivation and ability to contribute to organizational functioning (Roberson & Block, 2001). As a consequence, organizations must grapple with the concern of how to leverage the talents of their personnel in the pursuit of organizational objectives. Toward this end, diversity theorists have proposed that supportive diversity climates have positive ramifications for organizational performance through increased creativity, cooperation, problem solving, improved access to diverse consumer markets, and enhanced company image (Cox, 1994; Gilbert & Ivancevich, 2000; Robinson & Dechant, 1997). Unfortunately, very little research has investigated the influence of diversity climate on business performance, and it has been either qualitative in nature (e.g., Ely & Thomas, 2001 ; Gilbert & Ivancevich, 2000) or has addressed individual-level work attitudes and/or performance outcomes (Avery, McKay, Wilson, & Tonidandel, 2007; McKay, Avery, & Morris, 2008; McKay et al, 2007). Furthermore, diversity climate work has failed to address the issue of consistency of subordinates' and managers' climate perspectives and its potential organizational performance implications (e.g., Zohar, 2000; Zohar & Luria, 2005).
In an attempt to extend the burgeoning diversity climate literature, this investigation examines the influence of diversity climate on store unit sales performance within a large, U.S. retail organization. Specifically, we seek to link diversity climate to the larger organizational climate literature by developing theory to explain why (a) diversity climate, measured at both the subordinate and management levels, should relate to store sales performance and (b) the climate perspectives of personnel from these two hierarchical levels might interact to influence store performance. Extrapolating from Zohar's (2000) multilevel model of organizational climate and diversity climate theory (Cox, 1994; Thomas & Ely, 1996), we surmise that a store unit's stance on diversity will be most conducive to its performance when there is consistency across hierarchical levels in the view that a store values diversity as a key objective. Such reasoning posits an unexplored boundary condition regarding diversity climate, namely that consistency across job levels moderates its influence on performance. In the subsequent sections, we review literature on organizational climate and diversity climate and describe the diversity climate consistency concept, articulating formal study hypotheses where appropriate.
Literature Review and Hypotheses
Organizational Climate
Reichers and Schneider (1990, p. 22) defined organizational climate simply as "shared perceptions of the way things are around here" that derive from employees' aggregated, individual-level perceptions or psychological climate. Psychological climate in work settings refers to the valuations (i.e., meanings) that personnel place upon organizational attributes and events (e.g., supervisor and coworker actions, pay structures, work arrangements, equity of treatment, etc.; James & James, 1989; James et al., 2008). When the importance of these environmental events and characteristics are shared sufficiently across a meaningful segment of workers, as in a work group or business unit, a climate emerges. According to Bowen and Ostroff (2004), climate follows from organizational policies and procedures that reinforce particular employee actions and behaviors, thus leading to the development of shared perceptions of behavioral expectations.
Broadly speaking, Kopelman, Brief, and Guzzo (1990) conceptualized climate as multidimensional in nature and comprised of five core dimensions that apply across various work environments: goals emphasis (i.e., the extent that management identifies the goals employees are expected to accomplish), means emphasis (i.e., the procedures employees are expected to use to perform their jobs), reward orientation (i.e., the degree that firm rewards are believed to be distributed based upon job performance), task support (i.e., the degree that employees feel they are provided with the necessary resources to perform their jobs), and socioemotional support (i.e., the extent that management is perceived by employees as concerned for their personal welfare). For a particular climate referent of interest to a firm (e.g., diversity, safety, innovation, employee involvement, service), these five climate dimensions could prove relevant, though the salience of a given dimension might vary. Using diversity climate as an example, two particularly relevant dimensions might be means emphasis and socioemotional support. The consideration of diverse viewpoints might be stipulated as a means emphasis for how employees should perform their jobs, potentially resulting in creative approaches to completing work, improved service delivery, and store sales. In addition, minimizing both discriminatory treatment and employee marginalization would be examples of socioemotional support with potentially beneficial impact on employee attitudes and behavior. In fact, prior studies (Hicks-Clarke & lies, 2000; Hopkins, Hopkins, & Mallette, 2001; McKay et al., 2007) provide individual-level evidence of a strong positive diversity climateorganizational commitment relationship.
Much of the work that has investigated the effects of organizational climate on firm-level outcomes has utilized Kopelman et al.'s (1990) climate model of firm productivity. These authors proposed that climate influences firm performance through its effects on cognitive and affective states (e.g., work motivation and job satisfaction) and salient organizational behaviors (e.g., employee attachment, performance, and citizenship). Essentially, climates that are viewed as supportive enhance employee attitudes and/or goal-relevant work behaviors, with favorable influences on company performance. Corroborating Kopelman et al.'s (1990) theory, Patterson et al. (2004) showed that climates focused upon supervisory support, effort, innovation and flexibility, quality, performance feedback, and formalization positively predicted firm productivity in the following year as mediated by job satisfaction. Similarly, Collins and Smith (2006) found that climate for cooperation predicted both revenue from new products and services and 1-year sales growth through increased exchange of information between employees. Schneider et al. (2005) also reported mediated relations between grocery store departments' service climates and corresponding sales through customer-focused organizational citizenship behaviors (OCBs) and customer satisfaction. At a broader level of consideration, Borucki and Burke (1999) demonstrated that a higher-order climate, concern for employees (as inferred from workers' perceptions of management's behavior toward them), predicted retail store financial performance through improved sales personnel service performance (as measured by employee and customer subjective ratings). Still, other work has provided evidence of a direct climate-firm performance link for outcomes such as financial performance (Gelade & Ivery, 2003; Riordan, Vandenberg, & Richardson, 2005), sales (Gelade & Ivery, 2003), sales growth (Collins & Smith, 2006), customer satisfaction/service quality (Gelade & Ivery, 2003; Schneider & Bowen, 1985; Schneider, et al. 1998), and staff retention (Gelade & Ivery, 2003); however, these studies typically proposed mediated climateperformance relations as articulated by Kopelman et al. (1990).
Following prior organizational climate theory and research, we extend this literature by examining the effect of diversity climate, from the subordinate and managerial employee perspectives, on store sales performance. On the one hand, subordinates are the operating core of each business unit (Mintzberg, 1980). As such, they are responsible for carrying out day-to-day business operations associated with the production of the company's offering (i.e., goods or services). Managers, on the other hand, represent the middle line charged with ensuring the achievement of unit objectives (Mintzberg, 1980); therefore, as explained in subsequent sections of our review, we expect diversity climates from both job levels to have ramifications for store unit sales performance.
Main Effects of Diversity Climate on Store Unit Sales Performance
As stated previously, diversity climate is the extent that a firm promotes equal employment opportunity and inclusion. Cox (1994) developed the interactional model of cultural diversity (LMCD) to describe diversity climate's effects on organizational processes. According to the LMCD, diversity climate relates to firm performance through facilitative effects on employee attitudes (e.g., organizational identification, job satisfaction) and/or achievement outcomes (e.g., job performance). This conceptualization of a mediated diversity climate -> employee attitudes/achievement outcomes - >路 firm performance pathway overlaps considerably with Kopelman et al. 's (1990) general model of organizational climate effects on firm productivity. We extend this thinking to the storeunit level to articulate how diversity climate, across hierarchical job levels, might influence store sales performance.1
According to diversity climate theory and research, a work context is considered pro-diversity when, consensually, employees feel they have an equal opportunity to succeed on the job and are made to feel like integral members of the organization (Ely & Thomas, 2001; McKay et al., 2007; Thomas & Ely, 1996). Climates of this nature should be especially important to minorities given their experiences of racial-ethnic discrimination on the job (Bell, Harrison, & McLaughlin, 1997; Deitch et al., 2003), thus increasing the salience of diversity concerns among them (McKay et al., 2007). By minimizing differential treatment on the basis of group membership, pro-diversity climates should foster more favorable attitudes, improved individual performance, and in turn, increased unit performance. In contrast, a business unit with a less supportive diversity climate might be prone to various forms of institutional bias (e.g., disparate treatment of minorities and women, marginalization), thereby limiting the work contributions of some workers relative to others. The results should be less favorable attitudes, compromised employee performance, and by extension, reduced unit performance.
The b desire for tiffany jewelry on sale could be seen as my vain and florid dreams and I will lose interesting in others only for this.
best tiffany shop in the world,discount tiffany , tiffany jewelry sale.
While tiffany bracelets. is a grand company which stands for another kind of US beauty, the company tiffany on sale really does a lot to better our life. Thank you very much for your understanding. May Jesus bless you.
I do not mean that your frank gehry are not fantastic, but the eyes of women all the time since they highlight charm bracelet?
Retailers relieved by small uptick in sales over holiday season
Thanks to a last-minute surge of shoppers and less dramatic discounting, Santa gave retailers something to cheer about this holiday season.
U.S. chain store sales for December 2009 were up 2.8 percent compared to last year, according to numbers released Thursday by the International Council of Shopping Centers sales index, which tracks sales at 33 major chains. This was the best monthly performance retailers have seen since April 2008 but still not cause for celebration.
"Santa didn't deliver coal," said Ken Perkins, president of research firm RetailMetrics, "but he tiffany sale didn't deliver caviar."
After a year when a recession and job losses forced consumers to hold tight to their purse strings, it was a relief for retailers to see spending return. Sales for the entire holiday season are expected to be up 1.8 percent, according to the ICSC index.
That was better than most forecasts anticipated for the season. The National Retail Federation had predicted a 1 percent decline in holiday retail sales.
But even a modest sales improvement is also tempered by the fact that the 2008 holiday season was the worst in more than four decades. There is still no indication that consumers have returned to their free-spending ways, and analysts expect sales to slow again in early 2010.
"This doesn't mean that everything is fine and sales are going to keep growing," said Cynthia tiffany jewelry on sale of Strategic Mindshare, a retail consultant with offices in Miami. "What you're seeing here is pent-up demand surging through these numbers, and that's going to slow."
The forecast is even more murky for Florida, where the economy has been slower than much of the rest of the country to show signs of rebounding. South Florida retail sales have historically outperformed the national averages, but these days the pendulum has swung in the opposite direction.
"In Florida we still have very significant problems," Cohen said. "The good news is that tourism is coming back faster than the residential economy."
SUPER BOWL BONUS
This year's Super Bowl in Miami and the traditional influx of winter visitors provide South Florida retailers with an additional customer base, as shopping is always a key part of tourism activities. But as the tourist season ends, things will likely get tougher for local retailers, Cohen predicts.
This week South Florida apparel retailers are enjoying the unexpected benefit of unseasonably cold temperates.
"There is a silver lining in this cold weather," Cohen said. "People go out and buy blankets, coats and sweaters."
This surge will help retailers clear out already low inventory levels. This year retailer's success in anticipating customer spending helped them avoid the dramatic discounting that marked the 2008 holiday season.
For retailers that is expected to translate into improved profits. Macy's, Kohl's and Limited Brands were among retailers on Thursday that raised their fourth-quarter profit outlooks.
Macy's December same-store sales, considered the best measure of a retailer's health, were up 1 percent, including performance at Macy's and Bloomingdale's stores.
Strong performers were exclusive brands like Martha Stewart, Tommy Hilfiger and Rachel Roy, as well as private brands like INC, said Jim Sluzewski, Macy's spokesman. Shoes and mattresses also saw improvement.
"That's a strong indication that people were buying for self purchases," Sluzewski said. "Last year in the teeth of the market crash, people were buying gifts but not buying for themselves."
Retailers do not reveal regional sales figures and Wal-mart, the biggest U.S. retailer, no longer releases monthly sales figures.
DISCOUNTERS THRIVE
Nationally, some of the strongest retail performers for December were discounters like TJX Co., parent to the TJ Maxx and Marshalls chains, and Ross Stores. But gains were seen across the board including Costco Wholesale Corp., Target Corp., Nordstrom and Saks Inc.
Those that saw declines included jewelry chain Zale Corp., teen retailer Abercrombie & Fitch and bookseller Barnes & Noble.
But while the shoppers were out spending, retailers agree that their habits have changed. There is a new focus on frugality and practicality, patterns that are expected to continue.
"Customers are still shell-shocked over the economy, and they are being very careful about what they tiffany jewelry sale," said Gilbert Fiorentino, chief executive of CompUSA. "They are shopping price more than ever before."
The report was supplemented with information from Miami Herald wire services.
Star Tribune, Minneapolis, John Ewoldt column: 2010 sale calendar, Part 1
Shoppers who buy at the last minute often pay more. They don't do so because they want to -- they're just too busy to find out when the sales are. Leave that to Dollars & Sense. We've compiled a list of the best sales between now and June so you can plan purchases more carefully. We'll run another calendar for July-necklaces at the end of June. A few of the good sales are history -- Humane Society book sale, Kiwi Beach and Cole River accessories among them, but others will take their place. If you know of a good sale left off the list, send me an e-mail.
JANUARY
Jan. 26-Feb. 12: Twin Cities Consumers' Checkbook free look (651-646-2057, www.checkbook.org/Stribdeal). The magazine that rates local service providers such as auto mechanics, heating/air conditioning contractors, electricians, plumbers and doctors offers a free look at all of its articles and ratings. The nonprofit also offers a special: a two-year, four-issue subscription for $25, regularly $34, that includes the print magazine and online access.
26-Feb. 6: Eversharp knife sharpening sale (344 NE. Taft St., Mpls., 612-379-1300, www.eversharpknives.com). Regular knives sharpened for $1, $2 for serrated and $3 for scissors. The new Shun Classic and Ken Onion reconditioned knives are 40 percent off. A Wusthof 7-inch Santoku is $60 (reconditioned).
28-30: uber Outlet men's sale (6021 Lyndale Av. S., Mpls., 612-869-0930, www.myuberbaby.com). From a local, high-end men's clothier: Sport coats $100-$125 (reg. $800 to $1,400), sweaters $30 (reg. $365), long-sleeve shirts $20 (reg. $195), pants $30 (reg. $215) and ties $15 (reg. $125).
29-30: Bloomingdale's home sale (Mall of America, Bloomington, 952-883-2747). Waterford bedding will be closed out at 70 percent off and Dr. Weil kitchen small electrics closed out at discounts of 50 to 60 percent. The pre-sale is already in progress.
29-31: Designer Marketplace liquidation sale (Mpls., 612-381-8508, Woodbury, 651-731-8508, www.designermarketplacemn. com). An additional 25 percent off storewide and interest-free financing until 2011.
31: Rocco Altobelli Salon Spa fund drive and discounts (St. Paul, Edina, Burnsville, Minnetonka, Rosedale, Woodbury, 651-730-7077, www.roccoaltobelli.com). Appointments can be made starting Jan. 28 for Jan. 31 appointments. On the 31st, get discounts on services between 11 a.m. and 3 p.m. with a donation of three tiffanys food items per service. Cash or checks accepted for a haircut ($20 plus food), accent color ($20 plus food for 10-12 foils), brow wax ($10 plus food) and lip wax ($7 plus food). All proceeds go to Second Heartland.
FEBRUARY
1-7: Gallery 360 sweetheart sale (3011 W. 50th St., Mpls., 612-925-2400, www.gallery 360mpls.com). Handmade works, mostly from local artists, discounted 20 percent, including art, jewelry, pottery, clothing, glass and tile.
1-March 15: Jackie's moving sale (2189 Commerce Blvd., Mound, 952-472-6440). Jackie Peters, who ran the excellent Market Street Floral sales, is moving her furniture and accessories store to Excelsior. Everything is discounted 20 to 70 percent. Example: French country 6-foot round dining table and six chairs for $3,100, reg. $7,740.
10-14: Aldi Valentine's Day rose specials (20 Twin Cities locations at www.shopaldismart.com). One dozen long-stemmed red roses for $17. Other sales: 10-inch hanging baskets (impatiens, begonias, snapdragons) for $6 starting April 29. More flower specials near Mother's Day (May 9).
12-14: Operation Glass Slipper formal sale (Wellstone Center, 179 Robie St., St. Paul, 651-994-7989, www.operation glassslipper.org). The organization that provides free prom gowns and accessories to Twin Cities high-school girls in need sells its rejected dresses for $5 to $20, bridal gowns $20 to $50 and flower girl dresses for $20. Most are new but deemed too short, too old or too sophisticated for prom. Try them for cocktail parties, mother-of-the-bride or girls' dress-up. Jewelry, shoes and accessories are also sold. Cash only.
13: Arc's Value Village Thrift stores storewide 50 percent off sale (Brooklyn Center, New Hope, Richfield, St. Paul, 651-788-8300, www.arcsvaluevillage.com). Other 50 percent storewide sale dates: May 31, July 24 and Sept. 6.
13: Mode designer shoe event (7781 Main St., Maple Grove, 763-391-6102, www.shopmodestore.com). More than 500 pairs of women's shoes by Cole Haan, Stuart Weisman, Marc Jacobs, Robert Clergerie, Donald Pliner and Poetic License. Each pair is $40.
20: Nordstrom Rack large-size shoe event (Mall of America, Bloomington, 952-854-3131, and Arbor Lakes, bangles Grove, 763-898-5300). Other sales at the Rack: Tag sale on apparel and shoes May 4, large-size shoe event May 8, and women's contemporary clothing event May 13.
25-27: Patina clearance sale (2057 Ford Pkwy., St. Paul, 651-695-9955). A move from the Minneapolis gift shop outlet, the clearance sale remains in the Highland Park store basement with discounts of 50 to 75 percent on miscellaneous merchandise.
26-27: GH2 women's boutique 90 percent off sale (318 E. Hennepin Av., Mpls., 612-378-0509). Fall/winter items priced $5 to $200 after the discount.
MARCH
5-7: Totally Kids furniture and toys storewide sale (7876 Portland Av. S., Bloomington, 952-881-2425, www.shoptotallykids.com). Storewide 25 percent discount on kids' bunk beds, theme beds, college lofts, dressers, tables and toys.
13-14: Warners' Stellian extreme warehouse sale (550 Atwater Circle, St. Paul, 651-222-0011, www.warnersstellian. com). Many appliances, including overstocks and scratch-and-dents, offered below cost. It's also a rare chance to get high-end models from Viking or Jenn Air on sale. Manufacturer warranties still apply, but all sales are final.
18-20: Just Between Friends kids consignment sale (Eagan Community Center, 1501 Central Pkwy., Eagan, 763-226-5526). Large sale of kids' clothes and toys. Admission is $2 on the first day only. Most items are half-off on the last day. For more sales go to www.jbfsale.com.
25-27: David Rosenberg's spring/summer sample sale (location TBD, 612-343-3221). Women's, men's and kids' midline clothing and jewelry near or below wholesale cost.
APRIL
9-11; 15-18: Gage & Gage gift wrapping/accessories sale (660 Industrial Circle, Shakopee, 952-233-2081, www.gageware housesale.com). Bows 25 cents or less, gift boxes 20 cents to $2, gift bags 10 cents to $2, ribbon, tissue, wrapping paper, napkins and paper plates.
10-11: From Yours to Mine kids' consignment sale (Ames Hockey Arena, 19900 Ipava Av., Lakeville, 952-564-7566). Large sale of kids' clothes and toys. Admission is $1 on the first day only. Most items are half-off the last day. For a complete list of spring kids' consignment sales around the Twin Cities, go to www.twincitieskids sales.com.
13: Twin Cities Originals discount gift certificate sale (www.tcoriginals.com). Save 30 percent on $25 and $50 gift certificates to indie restaurants such as Biella, Great Waters Brewing Co., Ike's, Luci Ancora, Murray's and San Pedro Cafe. The online sale starts at 10 a.m. and many certificates sell out within an hour.
15-17: North Aire Market warehouse sale (1157 Valley Park Dr. S., Shakopee, 952-496-2887). Maggie and Mary's dry gourmet soups ($4 on sale), cheeseball mixes ($3) and smoothie mixes ($3) sell for about 40 percent less than at grocery stores.
20-24: Stroke of the Heart warehouse sale (3792 Williston Rd., Minnetonka, 952-945-9495). Locally designed greeting cards with simple watercolor designs priced as low as 10 cents each. Also, note pads or magnets $1.50 and boxed note cards $4.
24-25: Albertville Premium Outlets VIP Shopper Club Event (Albertville, 763-497-1911, www.premiumoutlets.com/albertville). Sign up for the club and its exclusive discounts at www.premiumoutlets.com/vip/.
MAY
8: Bridal Accents Couture sample sale (4401 W. County Rd. 42, Savage, 952-846-4496, ext. 2, www.bridalaccentscouture.com). Nearly all of its sample gowns are discounted 30 to 90 percent. More than 100 gowns for brides, bridesmaids, and prom will be on sale plus shoes, veils and jewelry.
26-June 6: Nordstrom Half-Yearly sale for women and kids (Mall of America, Bloomington, 952-883-2121). Save 33 percent and more during the spring clearance. Other sales: The men's Half-Yearly sale is June 18-29.
27-31: Half-Price Books 20 percent off everything sale (Apple Valley, 952-431-0749, Coon Rapids, Crystal, Maplewood, Roseville, St. Louis Park, St. Paul, www.halfpricebooks.com). Twenty percent off storewide.
JUNE
5: Papo d'Anjo warehouse sale (2325 Endicott St., Suite 11, St. Paul, 651-294-3900, www.papodanjo.com). Spring and summer high-end European children's wear for boys and girls from 6 months to 12 years.
11-13: Cooks of Crocus Hill tent sale (877 Grand Av., St. Paul, 651-228-1333, www. cooksofcrocushill.com). rings, scratch-and-dents, display and cooking school items discounted 50 percent or more, including cookware, food, gadgets, towels, dishes and cookbooks.
16: Linder's Greenhouse flower marts plant sale (651-488-1927 or www.linders.com/flowermarts/locations). Fifty percent off all perennials, annuals, and shrubs at the 40+ flower marts. The sale does not apply to all items in the garden center on Larpenteur Av. in St. Paul. If you can't wait, all plants will be 33 percent off June 6.
Pillar Data Systems’ Vice President of Worldwide Channel Sales Recognized as a 2010 Channel Chief by Everything Channel’s CRN
Pillar Data Systems today announced that Brad Painter, Vice President of Worldwide Channel Sales, has tiffany bracelet named a 2010 Channel Chief by the Everything Channel's CRN. Channel Chiefs are leaders in creating effective channel programs for solution providers. They consistently defend, promote and execute effective channel partner programs and strategies.
Under Painter's leadership during the past year, Pillar Data Systems revamped its partner programs and increased channel sales from 50 percent of its total revenue in 2008 to more than 65 percent in 2009. With new channel incentives introduced to Pillar's Partner Program - including allowing partners to sell, perform and profit from Pillar Professional Services - partners were able to increase their sales and margins across the board. The incentives were part of Pillar's effort to reinforce its commitment to the channel by better aligning the programs with the business models of its partners.
Additionally, Painter was instrumental in achieving program goals such as minimizing the numbers of authorized reseller partners per region to mitigate unnecessary competition among Pillar partners. Consequentially, the partners can develop stronger relationships with customers, putting them in a better position to succeed. Painter also helped create new programs to help partners better compete such as Price Matching, Volume-based Pricing, Seminar-in-a-box and Pillar Partner Portal.
"This past year, more than ever, it has been imperative for channel partners to clearly demonstrate and deliver added value and ROI to customers and prospects," said Brad Painter, Vice President of Worldwide Channel Sales, Pillar Data Systems. "At Pillar, we embraced this challenge and built our programs based on the philosophy of mutual success; we don't succeed unless our partners succeed. Because of the channel team's dedication and energy, Pillar was able to provide partners with better tools, training and technology which put them in a stronger tiffany cufflink to compete and win."
For the eighth consecutive year the Channel Chiefs were chosen based by Everything Channel editorial on criteria including policy and program innovations made during the past year, the amount of revenue their company generates through partners, their willingness to speak out publicly on behalf of the channel and the number of years they have dedicated to channel activities.
"Being named a Channel Chief is one of the most prestigious honors in the IT industry. This year's Channel Chiefs offers tremendous insight into the who's who of the Channel," said Kelley Damore, Vice President, Editorial Director, Everything Channel. "Top channel executives consistently ensure that the Channel's voice is heard when strategic decisions are being made and continually nurture mutually profitable relationships. We applaud the 2010 Channel Chiefs for their successful partner programs and strategies."
"We couldn't be more pleased with Brad's achievements and are proud to see him receive this well-deserving honor," said Bob Maness, Vice President Worldwide Marketing, Pillar Data Systems.
The Channel Chief list was published in the February 22, 2010 issue. For additional information on the CRN Channel Chief list, visit www.channelweb.com. For details on Pillar Data Systems' Partner Program, visit http://www.pillardata.com/partners/channel/.
Tweet this: Brad Painter, VP of Channel Sales @PillarData, honored as a 2010 @ChannelWeb #Channel Chief http://bit.ly/351wxM Congrats to all winners!
About Pillar Data Systems
Founded in 2001, Pillar Data Systems develops Application-Aware Storage systems for midsize and enterprise tiffany money clip. With the highest utilization rates in the storage industry, the Pillar Axiom solution is the most efficient storage system on the market today. The Pillar Axiom cuts administrative time and total cost of ownership by more than 50 percent as well as provides the only storage system that can differentiate services based on application priority. Designed from the ground up as the only true Application-Aware Storage system, the Pillar Axiom allows users to match multiple application characteristics to the appropriate service levels within a single storage platform. Pillar Data Systems is privately funded by Tako Ventures, LLC, the venture arm of Larry Ellison.
The company is headquartered at 2840 Junction Avenue, San Jose, California 95134. The company can be reached on the Web at http://www.pillardata.com, by phone at 408-503-4000 or by email at sales@pillardata.com.
About Everything Channel (www.everythingchannel.com, www.channelweb.com)
Everything Channel, headquartered in Framingham, MA, is a technology marketing and sales solutions company. Through its "Complete Technology Channel Solution," Everything Channel offers the right business tools to accelerate technology sales. From branding and recruiting to marketing and sales, Everything Channel offers technology marketers the unmatched breadth and depth of global brands and market intelligence combined with unparalleled audience loyalty and credibility serving all technology sales channels through an extensive database. Everything Channel provides innovative field sales and marketing solutions to the sellers of technology to achieve measurable and significant results.
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetisation of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities -- from doctors to game developers, from journalists totiffany pendanttraders, from farmers to pharmacists -- with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organised into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.ubm.com.
LONDOM MUSEUM DISPLAYS TIFFANY TREASURES
LONDON - After an array of dazzling pendants, earrings, and bracelets comes the piece de resistance: the 128-carat Tiffany Diamond, one of the largest yellow diamonds in the world.
The gigantic gem is the show-stopper of
"Bejewelled by Tiffany" at the Gilbert Collection, one of three galleries located at tiffanys Somerset House on the Thames River.
The Tiffany & Co.-sponsored exhibit, which opens June 24, uses jewels to trace the history of the celebrated American brand that has become synonymous with glamour.
The collection includes about 180 pieces that cover the first 150 years of Tiffany's history up to 1987, almost all of which have been loaned from the corporation's archives.
"In Britain people know about the film 'Breakfast at Tiffany's,' but don't have a lot of knowledge about Tiffany's history," said Clare Phillips, curator of the exhibit. "The magic of the name is understood, but people don't know a lot about how this glamorous company got started."
Indeed, what's best about the exhibit is that it's more than just a display of jewels, but tiffany bangles glimpses of fashion history by showing how the jewels were actually worn by Americans.
One model, for example, shows a woman wearing a brooch, a choker, a hair decoration, and a bodice ornament - all made from diamonds. It seems that wealthy American women in the 19th century so loved to pile on diamonds that Europeans ridiculed them for having no taste.
Another mannequin showed a 1970s woman wearing a bra made from sterling silver mesh.
"It's fascinating to see how the items were worn and how the items have changed," Phillips said.
Like many of his contemporaries, Charles Lewis Tiffany was unabashedly patriotic. The rubies, diamonds, and sapphires winking from an American flag brooch at the start of the exhibit are proof of this.
The exhibit works like a timeline. It introduces visitors to the entrepreneurial genius that transformed a modest New York store into an American institution before taking them on a journey through world wars and international exhibitions.
The first part of the exhibit, "The Rise of an American Institution," illustrates some of the tiffany rings behind Tiffany's early prominence and long-lasting appeal.
When Tiffany opened the doors of his first fancy-goods store on Broadway in New York in 1837, jewelry was only a minor part of the inventory. But that soon changed.
After political turmoil in Europe in 1848 caused the price of gems to fall, Tiffany snapped up cheap diamonds, including some from French aristocrats who were eager to unload them. The gems went into new Tiffany-designed settings, prompting reporters to nickname Tiffany "The King of Diamonds."
Tiffany, whose cameo portrait is included in the exhibit, understood the value of publicity and marketing. He introduced mail-order sales, producing the first catalogue in 1845. He also participated in the great international exhibitions, eventually opening a shop in Paris in 1868.
"The Paris Exposition of 1900 was crucial, because that's when Tiffany became a name that was known internationally," Phillips said.
Other parts of the exhibit include:
- "Temple of Fancy," which shows how the New York store aimed to suit the needs of every customer with pieces to mark every event from birth to death, from baby armlets to mourning pendants.
- "Such Stuff as Dreams are Made On," which covers the period from the 1870s to the start of World War I and explores Tiffany's evolution into making jewelry with a truly distinctive American flavor. By the early 1900s, almost every item was from an American source such as Maine amethyst, Colorado topaz and freshwater pearls from Wisconsin and Tennessee.
- "New York World's Fair and the 1940s" demonstrated Tiffany's patriotism yet again with a gold charm bracelet of victory symbols and gold earrings in the form of American B-25 bombers.
Perhaps what's most surprising is how many functional objects were transformed into exquisite works of art. There are men's accessories such as pipes, spurs, and pocket watches, as well as boxes, trays, and evening purses.
But there's still plenty of jewelry.
One display window highlights a 3.53-carat diamond engagement ring, pointing out tiffany bracelets its classic style was an important innovation in 1886. The ring's tall claws allowed an unprecedented amount of light to pass through the stone. This style has featured continuously in Tiffany's ring designs through the years.
The Tiffany Diamond has been featured at numerous international exhibits since Tiffany had it cut in Paris from a 287-carat crystal discovered in South Africa in 1877.
But "no Tiffany jewelry has ever been shown before in public collections in the United Kingdom," Phillips said. "I'd say we're bringing history to the surface."
IF YOU GO:
"Bejewelled by Tiffany, 1837-1987" celebrates Tiffany's sustained pursuit of superb design and craftsmanship. The exhibition runs from June 24 to Nov.
26.
It's at the Gilbert Collection, Somerset House, London. Gallery hours, a map and directions are at www.gilbert-collection.org.uk
Admission: Included in admission to permanent collection. Adult 5 pounds
Wells Fargo Securities Initiating Coverage on Tiffany & Co. With Buy Rating
Paula Kalandiak, luxury industry analyst at Wells Fargo Securities, has initiated coverage on the shares of Tiffany & Co. (NYSE: TIF; $36.30) with a Buy rating and a 12-month price target of $45.
Below are direct quotations from Ms. Kalandiak's research report:
 -- We are initiating coverage of Tiffany & Co. shares with a Buy rating
 and a price target of $45, or 30.4x our FY03 EPS estimate.
-- We view Tiffany as a core holding based on the company's consistent
 execution and brand focus. Tiffany has taken a disciplined approach
 to its policy of "growth without compromise," expanding only when it
 makes sense, and maintaining control over its brand image, which we
 believe is the company's most valuable asset. The Tiffany name has a
 long history of association with quality, timeless style, and trust.
 Tiffany is led by a strong, seasoned management team that we key rings
 will successfully steer the company through the currently
 challenging economic environment and beyond.
-- The company continues to open new locations at a modest pace,
 resulting in at least 5-8% square footage expansion per year, which
 we expect to contribute to top-line growth. Furthermore, favorable
 demographics (more than 5 million Americans have a net worth of more
 than $1 million) and high expected growth of the largest
 jewelry-buying demographic in the United States through 2010 should
 support increased jewelry sales in this country, for at least eight
 more years.
  -- We believe that Tiffany's longstanding reputation as a reliable
 jeweler offering quality merchandise and timeless style positions
 the company to capture additional jewelry spending.We expect
         several productivity initiatives, including further manufacturing
         and sourcing efficiencies, to yield gross margin tiffany, which
         should contribute to EPS growth of 10-15% for the next several
         years.
-- Shares of Tiffany are currently trading at 24.5x our FY03 EPS
 estimate of $1.48, a premium to the luxury industry's average P/E of
 18.4x. In our opinion, this premium is warranted given Tiffany's
 proven track record as a focused and consistent operator within the
 sector, and we believe that the company's consistency in the face of
 uncertain times will provide room for further multiple expansion.
-- On May 14, 2002 the company reported its 1Q02 results. EPS of
 $0.22 were 10% above the $0.20 that the company had earned in 1Q01
 and in line with its upwardly revised guidance. Revenues increased
 by 3.2% from 1Q01 revenues to $347.1 million, with each of the
 company's three divisions showing growth above 1Q01 results.
 Wells Fargo Securities, LLC is a full service investment banking firm. Headquartered in San necklaces with offices in Southern California, the Pacific Northwest and East Coast, Wells Fargo Securities is dedicated to long term relationships using the strength of its equity capital markets and Wells Fargo & Company products to provide outstanding service and support to its clients.
Investments made through Wells Fargo Securities: (1) are not insured by the FDIC; (2) are not deposits or other obligations of, or guaranteed by, Wells Fargo Securities, Wells Fargo & Company or any of its affiliates; (3) are not guaranteed by any Federal governmental agency (excluding U.S. Government and federal agency securities); and (4) are subject to investment risks, including possible loss of principal amount invested.
The study on these pages is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice. Facts have been obtained from sources considered reliable, but are not guaranteed. Wells Fargo Securities, its directors and employees and their families may have a position in the securities of the companies described herein, and may make purchases or sales while this report is in circulation. Additional information is available upon request.
Detailed Plans for Second Floor Renovation are Announced
Finally, specialty retail sales increased 47 percent in the holiday season. LITTLE SWITZERLAND stores represent most of that channel and posted double-digit sales growth. In addition, almost half of the specialty retail sales increase was due to the sale of rough diamonds purchased as part of larger assortments from certain mines but determined in the normal course of business to be unsuitable for Tiffany's production. You'll probably recall that we had started that selling process in the third quarter of 2004.
Finally, we recently launched IRIDESSE, which focuses exclusively on the pearl rings category. We've been pleased to hear favorable customer feedback, as well as feedback from those of you who have visited the IRIDESSE stores in the mall at Shore (ph) Hills and in Tysons Galleria. We are excited about its potential and plan to open several more IRIDESSE stores in 2005.
That covers sales in the four channels of distribution. As we've already alluded to, we experienced worldwide growth in all jewelry categories during the holiday season and saw customers definitely in a move to purchase jewelry at higher price points. Diamond jewelry was the most popular, including solitaire jewelry and engagement rings. The highest volume new collection this year was the ATLAS jewelry collection in a wide range of exciting motives in yellow and white gold and in sterling silver.
Many other relatively new jewelry collections are also generating a lot of customer excitement and sales, such as the Rose and wall (ph) collections, along with the Victoria, Jazz, bubbles, hearts, lace and legacy designs introduced in recent years.
At more moderate price points, we also achieved healthy growth in many other categories, including gold and silver jewelry, all of which benefited from new product introductions, including new silver jewelry with a cushion, mesh and 1837 collection, among others.
The watch category continued its strong worldwide growth, paced by the success of the Mark and ATLAS watch collections.
For name designer jewelry, the designs of Paloma Picasso and John Schlumberger performed well and Perretti sales increased on a worldwide basis even though it declined in Japan.
So overall, it was a very respectable holiday season. I will now turn the call over to Jim.
JIM FERNANDEZ, EVP & CFO, TIFFANY & CO.: Good morning.
I had said on our last conference call that we perceived a decent underlying tone to many parts of our business, which positioned us to achieve a favorable holiday season. We most certainly did that in the U.S. On that call, I also emphasized that, despite some improvement, we were probably not out of the woods yet in Japan. Unfortunately, that was also true. But in total our worldwide sales met our expectations.
Tiffany caters to discerning customers who desire extraordinary products, and these holiday sales results confirm Tiffany's bracelets strong appeal. Our ongoing and very active product-development program successfully complements our classic designs in the engagement and other high-end categories. In fact, while new products in total represent slightly less than 10 percent of sales in any given year, the percentage of new products is significantly higher in the more fashion-sensitive categories of gold and silver jewelry. All in all, we are generating considerable excitement and enthusiasm among customers and are pleased with these results.
It was a busy season and the Tiffany organization functioned very well. Our retail store management and sales professionals successfully served large numbers of customers. Our distribution centers efficiently handled substantial numbers of transactions to make sure that our stores were well stocked and customers promptly received their Internet and catalog orders. Our highly talented craftspeople and jewelry manufacturing continued to produce extraordinary jewelry to delight our customers.
Looking forward, we have one more month in fiscal 2004. January typically represents only 15 to 20 percent of fourth-quarter sales, but we are assuming a continuation of holiday sales trends.
In terms of gross margin, we expect a decline of almost 2 points in the fourth quarter. A significant factor continuing to affect margin will be higher precious metal and diamond costs, and sales of rough diamonds recorded in the specialty retail channel will also hurt margin. We also continue to expect some effect from costs related to underutilization of certain internal jewelry manufacturing capacity. Sales mix will have an adverse effect on margin due to higher spending per transaction tied to strong diamond and jewelry sales. Lastly, margins should benefit to some degree from sales leverage on fixed costs.
We expect that SG&A expenses will probably increase by a mid-single digit percentage in the fourth quarter. Therefore, these results keep us on track to achieve our previously announced earnings expectation. Since the time of that projection in November, Tiffany's sale of its equity interest in Aber Diamond Corporation was completed in December, which will contribute additional earnings of approximately 84 cents per diluted share.
Related to the sale of that equity holding, I want to emphasize the Tiffany and Aber maintain an excellent commercial relationship with a diamond purchase agreement that runs through 2013. We made the investment in Aber in 1989 and established the purchase agreement. We simply believe now that there was no longer a strategic need to hold that equity stake. Instead, we can better serve shareholders' interests by deploying the proceeds from that sale toward other uses, whether for share repurchases, debt reduction, additional relationships that give us greater control over the diamond supply chain, or for other general corporate purposes.
While we do not disclose balance sheet information on this call and always wait until we report fourth-quarter and full-year results, it's safe for you to assume that Tiffany's balance sheet is in very good shape.
We have many exciting initiatives to pursue in 2005. We've already announced plans for new stores in Naples, Florida and two additional stores in California, in Carmel and Pasadena. We will also open several international stores. In total, we expect to add about 5 percent to our worldwide base of Tiffany stores. We will also continue to expand our specialty retail operations and broaden our direct marketing reach. Our product-development team has many new designs in the pipeline and we are sure we will continue to inspire existing and new customers through our marketing and public relations activities.
In today's press release, we issued our preliminary expectations for 2005, which call for annual growth of 8 to 10 percent to net sales and 10 to 12 percent in net earnings. Of course, this earnings growth object excludes the gain on the Aber stock sale from the 2004 base. This factors in some operating margin improvement in 2005 but also factors in some continued uncertainty with our business in Japan. Please be aware that these earnings projections for 2004 and 2005 exclude any effects of the American Jobs Creation Act, which was signed into law in October of 2004. We are currently analyzing what effect the Act will have on our financial statements. In addition, the earnings projection for 2005 does not include any effect from the required accounting for share-based payment.
We also indicated in today's press release that we are currently reviewing our longer-term objectives that have called for low double-digit sales growth and midteens earnings growth and which have remained virtually changed for many years. Once we complete this review process, we will share our thoughts with you.
In closing, 2004 has been a year of many achievements, but from a financial performance standpoint, they were mostly offset by a few challenges. Nonetheless, Tiffany's cufflinks management team is as enthusiastic as ever about pursuing the many growth opportunities ahead of us. We appreciate the ongoing interest of so many of you around the world. Please note on your calendars that we expect to announce Tiffany's fourth-quarter and full-year 2004 results on Monday, February 28.
That concludes this call but of course, please feel free to contact Mark with any questions or comments.
OPERATOR: This does conclude today's conference call. At this time, you may disconnect.
[CCBN reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes.
Firelight Electronic Cigarette Sales Explode After Federal Judge’s Decision
The Firelight electronic cigarette by E Cigarettes National has been flying off of the shelves over the last discount tiffany, likely due to a recent decision by a federal judge that blocked the FDA from stopping shipments of the new alternative to tobacco that is making waves across the US and around the world.
"I did not want to make the investment in them and then have them banned, and no way to get the refills for them," states Judy Durhan of Tennessee. "So I waited for the ruling to make sure I was not wasting my hard earned money to turn around and lose it. Thank God this federal judge made the decision in e-cigarettes' favor."
According to Tiffany Ellis of E Cigarettes National, this is a common story they get from customers that have been on the tiffany for sale over the electronic cigarettes legal issues. "We believe that now we can sell our product in peace while the remainder of the process is completed in a court of law, and we also believe that the e-cigarette, like our Firelight e cigarette kits, will continue to be sold to the public as a tobacco product or tobacco alternative. Our brand has seen a considerable jump in sales and we expect this trend to continue as more and more smokers make the switch and more people learn about them."
Another reason E Cigarettes National may be seeing an increase in sales is the popular Firelight series of e-cigarettes that add many extras at a much lower price point than most of the competitors online and at retail locations across the US. With this kit being just under 50 dollars, this may be a determining factor in the sudden increase in the sites popularity.
Provided by E Cigarettes National. http://www.ecigarettesnational.com
This press release was issued through 24-7PressRelease.com. For further tiffany jewelry, visit http://www.24-7pressrelease.com
SOURCE E Cigarettes National
Tiffany Raises Full-Year Targets
In another sign that the bruised luxury sector may be nursing back to life, jewelry retailer Tiffany & Co. on Tuesday raised its profit outlook for the year after holiday sales turned out better than expected.
Sales in the two months ended Dec. 31 rose 17% to $799.1 million, the New York-based company said. Excluding the tiffany jewelry-translation impact, sales would have risen 13% with comparable-store sales increasing 8%. The company had 220 stores as of Dec. 31.
Tiffany raised its profit outlook for the year ending Jan. 31 to $2.07 to $2.12 a share from a previous projection of as much as $1.98 a share. Sales are expected to be $2.7 billion, the company said. Last year, Tiffany earned an adjusted profit of $2.33 per share on revenue of $2.86 billion.
Analysts, on average, were looking for Tiffany to post earnings of $1.96 a share on sales of $2.65 billion for the fiscal year ending this month, according to FactSet.
Sales in the Asia-Pacific region increased 11% to $240.8 million. On a constant-currency basis, sales rose 4%. tiffany bracelets-store sales rose 1%. They declined 12% in Japan and surged 26% increase across the rest of the region.
Tiffany's fellow high-end retailers Saks Inc. and Nordstrom Inc. last week also reported better-than-expected for December, signaling that consumer spending is gradually recovering and shoppers feel more comfortable about buying things they don't need, analysts said.
Tiffany also has benefited from a return of tourists to the U.S. as the dollar loses its value against foreign currencies while demand across most of its overseas markets also remained robust, they said. Analysts have said upscale jewelry spending has picked up during the holidays as demand was driven by shoppers with higher average household income as they sought "special" gifts.
"Sales trends are strong internationally and improving in the U.S., and the company continues to face easy comparisons throughout" fiscal year 2010, said Credit Suisse analyst Paul Lejuez, in a note published ahead of the Tiffany results. He said lower diamond and precious metal costs also will help bolster Tiffany's gross margin.
In the Americas, sales increased 15% to $443.9 million. Comparable U.S. store sales increased 12%, driven by a 20% increase in its New York tiffany pendants and a 10% gain for U.S. branch stores. Demand was higher from both local customers and foreign visitors as the number of transactions increased. Internet and catalog sales in the U.S. increased 17%.
Sales in the Asia-Pacific region increased 11% to $240.8 million. On a constant-currency basis, sales rose 4%. Comparable-store sales rose 1%. They declined 12% in Japan and surged 26% increase across the rest of the region.
Sales in Europe increased 30% to $103.0 million. Excluding currency impact, sales increased 19% and comparable-store sales rose 16%, resulting from double-digit growth in the U.K. and most other countries.
Write to Andria Cheng at andria.cheng@dowjones.com
Credit: By Andria Cheng
TIFFANY, KEY RETAILERS GAIN HOLIDAY MOMENTUM
With the bulk of the holiday shopping season ahead, retailers have reason for some optimism.
Among the companies reporting quarterly results Wednesday, earnings were mixed but sales were strong. And of the few retailers who released same-store sales after the market closed, comps were robust. There were also signs that key retailers, such as Tiffany & Co., had developed enough momentum heading into the holiday tiffany season to propel results.
Tiffany delivered a 23 percent profit gain for the third quarter on a 10 percent sales gain. Chico's FAS posted a 21 percent earnings decline on a 13 percent sales gain. Aropostale's net income rose 25 percent on a 19 percent sales gain. Regarding November same-store sales, American Eagle Outfitters said comps gained 14 percent while skate lifestyle retailer Zumiez posted a 12.1 percent gain. Hot Topic's comps declined 4.3 percent, but were better than expected.
On Wall Street, the market reversed course after two days of red, after a government report on the gross domestic product that revealed better-than-expected strength. The Dow Jones Industrial Average rose 0.7 percent, or 90.3 points, to 12,226.73 while the S&P Retail Index gained 1 percent to 499.03.
Regarding holiday sales, FTI Consulting said Wednesday that it is forecasting a 4.8 percent increase in sales for the period including this month through January. This compares with an actual increase of 6.9 percent last year. In a separate report, total online purchases on Cyber Monday jumped 26 percent to a record $608 million, according to the figures from ComScore Networks. There were also other pockets of optimism in the market.
In a survey released by Accenture, consumers said they not only prefer gift cards, but plan to spend more than the value of the cards they receive. "Gift cards have the potential to change holiday retailing, and retail in general, as much as online shopping has," said Janet Hoffman, managing director of Accenture's North silver bracelets retail practice.
According to quarterly results released Wednesday, luxury goods retailer Tiffany said net income for the three months ended Oct. 31, jumped to $29.1 million, or 21 cents a diluted share, from $23.8 million, or 16 cents, in the same year-ago quarter. Sales climbed to $547.8 million from $500.1 million. U.S. retail sales gained 9 percent to $270.4 million, while same-store sales rose 6 percent. Comps at the Manhattan flagship on Fifth Avenue rose 13 percent and 4 percent at branch stores. International sales rose 9 percent to $221.7 million. Strong sales in many overseas markets compensated for weaker results in Japan.
For the nine months, net income dipped 0.8 percent to $113.4 million, or 80 cents, from $114.4 million, or 79 cents, in the same year-ago period. Sales rose 8.2 percent to $1.66 billion from $1.54 billion.
James Fernandez, chief financial officer of Tiffany, told Wall Street during a conference call, "Tiffany's worldwide sales growth in November to date is currently running ahead of our expectation.Of course, keep in mind that the vast majority of Tiffany's holiday business to be transacted is still ahead of us in December, so we will not and would advise you not to extrapolate results in November to the entire holiday season and fourth quarter, but at least we are enjoying a good start."
The company is expecting U.S. comp-store sales to rise in the high-single digits, and international comps, on a constant exchange basis, to grow in the midsingle digit range. James Hurley, luxury goods analyst at Telsey Advisory Group, observed, "For Tiffany, they have great momentum heading into the fourth quarter. The company noted the acceleration of business trends in November, and it is better than what we've heard from other luxury players in the U.S."
While other firms may be looking at moderating trends, Tiffany has some catalysts working in its favor, according to Hurley. Those factors include a fully renovated flagship on Fifth Avenue and incremental sales gains with the Frank Gehry launch, which targets a new customer profile for the retailer. Tiffany also sees strong growth in transactions over the $20,000 range, suggesting that the luxury customer is still interested in what Tiffany has to offer.
"I was at the Short Hills mall [in New Jersey] and at Tiffany's Manhattan flagship on Black Friday," Hurley said. "The [silver cufflinks] stores were unbelievably packed. [Colleagues] were in San Francisco and Boston, and Tiffany was the most crowded store at the high end. There's not really any reason for customers to shop at luxury stores on Black Friday because there's no discounting. Yet the customer traffic at Tiffany was so strong."
Charms are a new area of focus for Tiffany, and one that may be key for holiday. The company also expects to do more volume in the fourth quarter in sterling silver in giftable items.
At Chico's FAS, executives said they would refrain from providing fourth-quarter guidance since the Christmas season has yet to come in, and, with the retailer's recent volatility in same-store sales, they feared it would be viewed as a "low ball" or that they might make an estimate they could miss.
Chico's lowered earnings were attributed to fashion blunders and costs from new store openings. For the quarter ended Oct. 28, profits at the women's apparel retailer fell to $42.1 million, or 24 cents a diluted share, from $53.2 million, or 29 cents, in the year-ago period. Sales rose to $403.6 million from $358.7 million, while total same-store sales dipped 1.2 percent. By brand, Chico's stores saw a 3 percent decrease in comps, while those at White House|Black Market rose 5 percent.
For the nine-month period, earnings dropped slightly to $148.5 million, or 83 cents a diluted share, from $149.5 million, or 82 cents, during last year's period. Sales jumped 16.7 percent to $1.2 billion from $1.03 billion.
"The aggressive store opening/relocation/expansion program, combined with the operational initiatives in the technology and customer service areas we are undertaking, have put short-term pressure on our earnings," said Scott Edmunds, president and chief executive officer, in a statement. "These factors, along with missteps in our fashion merchandising, have been the principal reasons for the volatility in our short-term profitability."
Jennifer Black, analyst at the firm that bears her name, observed, "I do not think they will be able to fix the fashion issue in time for the holidays at Chico's; however, they have been able to tweak the assortments coming in and cancel some orders."
She added that, on the morning of Black Friday, Chico's offered a $25 gift card for every $100 spent at White House|Black Market. "They have never utilized an incentive like this before, and it's a great way to build store traffic. I think White House|Black Market will have a quicker turnaround. They are bringing back their strictly black-and-white merchandise and the new merchandise coming in looks great. It is simpler to fix that business than Chico's. It will take a longer time to fix Chico's, but they are making the right decisions, especially investing in their employees. Long term, their mistakes will make them a much better company," Black said.
While Aropostale's focus on balancing fashion and basics paid off in the quarter as the company reported earnings results that exceeded its expectations, at least one analyst maintained his "sell" rating.
Eric Beder, at Brean Murray Carret & Col, which, on Monday, downgraded shares of Aropostale to a "sell" from a "hold," on Wednesday maintained his "sell" ratings after the chain's earnings report.
"Virtually nothing in our thesis has changed as a result of the earnings release and comps; we continue to believe the silver money clips is unable to drive material sales growth without resorting to significant discounting, which will serve to limit bottom-line upside, especially as Aropostale begins to anniversary its 50 percent-off sale for the holidays," Beder wrote.
Aropostale said net income for the three months ended Oct. 28 rose to $32.6 million, or 61 cents a diluted share, from $26.1 million, or 47 cents, a year ago. Sales for the quarter climbed to $385.5 million from $324.7 million last year.
For the nine-month period, earnings rose 17.1 percent to $49.4 million, or 91 cents a diluted share, from $42.1 million, or 75 cents a share, during the comparable period last year. Sales for the nine months increased 17.9 percent to $906.4 million from $769.1 million in the same period last year.
"Our overall results for the third quarter exceeded our initial expectations and are a result of broad-based improvements in our business," said Julian Geiger, chairman and ceo, in a statement.
During the company conference call to Wall Street, Geiger said the company experienced "solid sales and margin growth in classifications which will continue to drive its business for the remainder of the year. We remain optimistic about our opportunities as we enter the key holiday selling season."
For the holiday selling season, Aropostale said it expects denim, fleece, outerwear and sweaters to drive business through Christmas, Geiger told analysts.