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Tiffany & Co. Beats Expectations And Raises Full-Year Outlook

Tiffany & Co. Beats Expectations And Raises Full-Year Outlook Comment Now Follow Comments Following Comments Unfollow Comments

tiffany and co Luxury jewelry Tiffany & Co. reported better-than-expected second quarter earnings results Wednesday morning, beating the Wall Street forecast on both profit and revenue largely due to continued success in colored diamond sales as well as strong sales in the statement jewelry category. As a result of the solid report, Tiffany raised its full-year forecast and sent its shares into positive territory in early Wednesday trading.

cheap tiffany The 177-year-old jeweler reported $992.9 million in second quarter revenue, up 7% compared to the year-ago quarter and higher than the $989 million analyst consensus. Net income rose 16% to $124 million, resulting in earnings of 96 cents per share, a figure that beat the Street estimate by 10 cents and the year-ago EPS by 13 cents.

tiffany and co outlet Company executives attributed the growth to a strong product mix as well as a higher gross margin.

tiffany outlet “These healthy second quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions,” Michael Kowalski, Tiffany chairman and CEO, said in a statement Wednesday morning. “We were also pleased with solid performance across most product categories, ranging from the success of perennial classics in fine, statement and engagement jewelry to our newest Atlas collection, and we are excited about the current debut of our new Tiffany T jewelry collection.”

tiffany and co The Tiffany T collection, which debuted last week, is a an offering of simple metal designs — pieces are available in yellow, white or rose gold as well as sterling silver — and prices range from a few hundred dollars to nearly $20,000. Oliver Chen, an analyst with Citi research, wrote in a Wednesday morning note that Tiffany’s top line should benefit from the collection, which “should help drive fashion jewelry average unit retail as well as traffic.”

cheap tiffany Chen called the retailer’s results solid and noted that the stock “yields a premium multiple given superior brand equity and awareness, strong global growth trajectory particularly in China, and 5% square footage growth.” Citi has rated Tiffany as a buy and given it a $110 price target, about $10 higher than the stock’s Tuesday closing price.

As expected , Japan was an area of weakness — a consumption tax was instituted on April 1 and led to a 13% sales decline in the quarter.  Tiffany’s vice president of investor relations, Mark Aaron, said in a conference call with investors that despite this decline, Tiffany does expect sales in Japan to return to positive territory by the end of the year. “The good news is that following a substantial sales decline in April, there was a decelerating rate of sales decline afterwards,” he said.

Looking ahead to the rest of 2014, Tiffany said that its strong second quarter is leading it to raise its full-year earnings forecast by 5 cents per share, or a range of $4.20 to $4.30 per share.

Following the release of the earnings result, shares of Tiffany rose more than 3% in early Wednesday trading; year-to-date, the stock is up 8.9%.

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