Tags: Tiffany | sales | jewelry | earnings

Tiffany Results Rise, Tops Expectations as Sales Improve in All Regions

Tuesday, 28 May 2013 08:31 AM

Tiffany & Co. says its first-quarter net income rose 3 percent as sales improved across all regions.

The results beat Wall Street expectations, and its shares rose 6 percent in premarket trading

Tiffany is a barometer of luxury spending so the latest results show the resilience among affluent shoppers despite economic challenges around the globe. Still, the company remains cautious about the environment and said it was sticking to its profit outlook.

The high-end jewelry company known for its blue boxes earned $83.6 million, or 65 cents per share, for the period ended April 30. That's up from $81.5 million, or 64 cents per share, a year ago.

Excluding costs tied to staff and occupancy cuts, earnings were 70 cents per share. This easily beat the 53 cents per share analyst expected.

Revenue for the New York company rose 10 percent to $895.5 million from $819.2 million, topping Wall Street's $855.7 million estimate.

Sales increased 9 percent globally to $895 million. The conversion of five Tiffany stores in the United Arab Emirates to company-run stores from independently-run stores in July helped other sales triple to $27 million. Sales for the Asia-Pacific region rose 15 percent to $223 million.

Sales were helped by promotional events tied to Tiffany's 175 anniversary as well as a tie-in for "The Great Gatsby" movie, for which the company designed the jewelry.

In the Americas, sales climbed 6 percent to $408 million. European sales also increased 6 percent to $93 million, while sales in Japan rose 2 percent to $145 million.

For the second quarter, Tiffany anticipates earnings will be equal to the prior-year period's 72 cents per share. Analysts expect 79 cents per share.

But Tiffany reaffirmed its fiscal 2013 earnings forecast of $3.43 to $3.53 per share on Tuesday. Wall Street predicts $3.48 per share.

Chairman and CEO Michael Kowalski said in a statement that the chain was sticking with its guidance because of ongoing soft sales in the Americas and the weaker yen.

The company had 275 stores at quarter's end.

Its shares rose $4.59, or 6 percent, to $80.80 in premarket trading.

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Tiffany & Co. says its first-quarter net income rose 3 percent as sales improved across all regions.
Tuesday, 28 May 2013 08:31 AM
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