Tiffany has seen its profits fall but been buoyed by robust demand for platinum despite rising prices.

The world's second largest retailer in the industry saw profits slide by 35 per cent, although sales rose by six per cent from $810.1 million to $858.4 million for the quarter ending January 31st.

Platinum and diamonds were named as two of the better selling precious metals, as US retail sales rose by eight per cent in the fourth quarter despite a rise in the price of platinum.

The new flagship New York store struggled, as sales dipped by two per cent, but with four new stores opening in the year, chairman and chief executive Michael J. Kowalski was pleased with the results.

"We are pleased with Tiffany's overall success in 2005. We increased sales in the U.S. and in many international markets, improved performance in Japan, opened stores that generated strong initial results, expanded our product offerings with exciting, new designs and strengthened our product sourcing capabilities," he commented.

Worldwide retail sales rose by one per cent to $304 million in the fourth quarter and were up by five per cent to $900 million in the year.


Ÿ Adfero Ltd