Courtesy of Benzinga.
Tiffany & Co (NYSE: TIF) reported better-than-expected earnings for the second quarter and raised its FY14 forecast.
The New York-based company posted quarterly net earnings of $124 million, or $0.96 per share, up from $107 million, or $0.83 per share, in the year-ago period.
Its sales surged to $992.9 million versus $925.9 million. However, analysts were expecting earnings of $0.85 per share on revenue of $987.86 million.
In the Americas, Tiffany’s total sales climbed 9% to $484 million, while comparable store sales rose 8%. In Asia-Pacific, total sales jumped 14% to $237 million, while comparable store sales gained 7%.
In Japan, total sales fell 13% to $119 million, while comparable store sales slipped 13%. In Europe, Tiffany’s total sales jumped 8% to $120 million, while comparable store sales dropped 8%.
Michael J. Kowalski, chairman and chief executive officer, said, “These healthy second quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions.
Tiffany’s gross margin widened to 59.9% from 57.5%, while the operating margin increased to 21.0% in the quarter.
At July 31, 2014, cash and cash equivalents and short-term investments totaled $398 million, down from $490 million in the year-earlier period. At July 21, 2014, net inventories surged 9% to $2.5 billion.
Tiffany now expects FY14 earnings of $4.20 to $4.30 per share, versus its earlier forecast of $4.15 to 4.25 per share. It also projects net sales for the year to rise by a high-single-digit percentage.
During the quarter, Tiffany opened 1 store in the Americas in Aventura, Florida.
Tiffany shares gained 1.22% to $102.00 in pre-market trading.
