Tuesday, August 27 12:45:06
Tiffany and Co today reported a higher quarterly profit, helped by stronger-than-expected sales in China that trumped fears of a slowdown there, and the U.S. jeweler raised its full-year forecast.
Shares of Tiffany rose 2 percent to $83.30 in trading before the market opened.
Global sales rose 4.4 percent to $925.9 million in the second quarter ended July 31, below the $941.4 million analysts were expecting, according to Thomson Reuters I/B/E/S. The depreciation of the yen hurt results in Japan, where Tiffany gets about 20 percent of its sales.
Sales at stores open at least a year rose 5 percent globally, in line with analysts' estimates. Brisk business in China fueled a 13 percent gain in Asia outside Japan, well above estimates.
Same-store sales rose 7 percent in Europe, excluding currency fluctuations, and were unchanged in the Americas.
Tiffany reported net income of $106.8 million, or 83 cents per share, compared with $91.8 million, or 72 cents per share, a year earlier.
The profit was 9 cents more than analysts expected, helped by lower pressure from diamond and gold prices. Also, Tiffany said its price increases did not deter shoppers.
The company now expects a profit of $3.50 to $3.60 per share this fiscal year, 7 cents more than its previous forecast range.
Tiffany still expects net sales worldwide to increase by a mid-single-digit percentage rate, including the effect of the strong U.S. dollar. (Reuters)