Profits at Irish arm of Tiffany lose some of their sparkle

The directors state that the company recorded a net pre-tax profit margin of 6% compared to 5% in 2022

The drop in pre-tax profits at Swarovski Ireland Ltd came as revenues dipped by 1% from €4.59m to €4.55m in a flat year revenue-wise for the company. File photo

Pre-tax profits at the Irish business of jeweller and luxury goods retailer, Tiffany last year lost some of their sparkle as pre-tax profits almost halved to €155,000. 

New accounts filed by Tiffany’s & Co show that the profits tumbled as revenues declined by 17% from €5.37m to €4.43m. The pre-tax profits of €155,000 for 2023 follow pre-tax profits of €281,000 for 2022.

The directors state that the company recorded a gross margin of 50% compared to 44% in 2022 and a net pre-tax profit margin of 6% compared to 5% in 2022.

The firm’s lease charges last year decreased from €937,000 to €672,000 while staff costs fell from €673,000 to €624,000. Numbers employed remained at 11. Shareholder funds totalled €995,000.

In 2022, the Irish arm of Tiffany was part of the global Tiffany business that was purchased for €15.8bn by luxury goods giant, LVMH. The directors say that the Irish unit of Tiffany & Co “is well placed to manage its business risks”.

Separate accounts for the Irish arm of crystal product and fashion jewellery firm, Swarovski show that pre-tax profits plummeted from €481,000 to €42,000 last year.

The drop in pre-tax profits at Swarovski Ireland Ltd came as revenues dipped by 1% from €4.59m to €4.55m in a flat year revenue-wise for the company. The company operates through a number of store locations in Dublin and through sales to authorised resellers in Ireland.

The directors state that “the decrease in profit is mainly due to higher cost of goods combined with refurbishment costs of retail portfolio, enhancements to the variable pay structure for retail employees”.

A note says that the company holds no external long-term loans or debt.

It states: "The company holds one intercompany loan payable to a group undertaking. The intercompany loan has a legal maturity date in 2026 with the company having the option to extend the loan terms by a further three years if required."

Numbers employed by the business increased from 35 to 38 as staff costs decreased from €797,000 to €778,000. The profits take account of non-cash depreciation costs of €593,000 compared to €327,000 in 2022.

The business is headquartered in Switzerland and cash funds decreased from €741,000 to €323,000.