The company’s Asia-Pacific region total sales jumped 20% year-over-year to $208 million, with same-store sales up 13% in the quarter. Sales in the European region were up 11% to $111 million, and same-store sales were up 7%. In the Americas, sales rose 2% to $444 million, and same-store sales were flat.
Tiffany raised its full-year EPS guidance from a previous range of $3.43 to $3.53 to a new range of $3.50 to $3.60. The company expects operating profits to rise faster than sales, gross margins to be flat with last year and expenses to be lower. The forecast excludes $0.05 per share in first-quarter cost reduction charges.
The company’s CEO said:
Total sales growth met our objective due to solid performance in most regions, and with particular strength in our statement and fine jewelry product categories. … Looking forward, we are equally excited about the initiatives we are pursuing in product development, marketing communications and store expansion, all intended to further enhance Tiffany’s strong brand position and take fuller advantage of its long-term growth opportunities in the global luxury market.
The company’s worldwide net sales rose 4%, but excluding currency exchange effects sales would have risen 8%. That is a big bite, and it could get bigger as the company continues to expand in Asia. Overall, though, Tiffany had a solid quarter and expects a good second half of the year.
Shares are up about 2.3% in premarket trading Tuesday morning, at $83.56 in a 52-week range of $55.83 to $82.84, so Tiffany is set to post a new 52-week high. Thomson Reuters had a consensus analyst price target of around $82.90 before today’s results were announced.
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