The Associated Press June 17, 2010, 4:27PM ET

Tiffany reiterates 2010 expansion plans

Speaking during a Deutsche Bank consumer conference in Paris, Tiffany & Co. CFO Jim Fernandez reiterated the company's plans to expand in 2010.

While the luxury goods seller reduced capital spending last year, it plans for capital outlays of 6 percent to 7 percent of sales this year, Fernandez said.

Fernandez affirmed Tiffany's plan to open 16 stores in 2010, including six in the Americas, eight in Asia-Pacific and two in Europe. Tiffany now operates 223 stores in 22 countries.

After sales fell 5 percent in 2009, Tiffany reported revenue rising 22 percent for 2010's first quarter, which ended April 30. That included an increase in traffic in the U.S., Fernandez said.

"Consumers were feeling much better," Fernandez said.

Tiffany's other plans include launching a leather goods collection including handbags developed by Richard Lambertson and John Truex and accessories such as wallets, key holders, business card holders and luggage tags to sell for $100 or $120, less than a typical Tiffany item, Fernandez said.

"We have to see how they sell on our major market stores, and then we can talk about further distribution around the world or through Europe," Fernandez said.


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