Tiffany Boosts Full-Year Forecast on Improved 2Q Profit

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EARNS TIFFANY
Mark Lennihan/AP
By Devika Krishna Kumar and Ramkumar Iyer

Upscale jeweler Tiffany & Co. (TIF) raised its full-year profit forecast for a second time following a better-than-expected quarterly profit, driven by strong sales in the Americas and Asia-Pacific regions.

Shares of Tiffany, known for its Blue Boxes and its Fifth Avenue flagship store in Manhattan, rose as much as 4.8 percent in premarket trading Wednesday.

"We were ... 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," Chief Executive Officer Michael Kowalski said in a statement.

Lower-priced jewelry such as the Atlas collection -- a range of silver jewelry including lariats and pendants priced below $500 -- nets Tiffany higher margins than its more expensive pieces, for which it is famous.

The company said comparable-store sales in the Americas region, which accounts for nearly half of Tiffany's overall sales, rose 8 percent in the second quarter ended July 31.

Same-store sales in the Asia Pacific region grew 7 percent, driven by strong demand in Greater China and Australia.

Tiffany raised its earnings forecast for the year ending Jan. 31 to $4.20-$4.30 a share from $4.15-$4.25.

The company's net income rose 16 percent to $124.1 million, or 96 cents a share, in the second quarter.

Net sales rose 7.2 percent to $992.9 million on a constant currency basis. Total comparable-store sales rose 3 percent.

Analysts on average had expected a profit of 85 cents a share on revenue of $987.9 million, according to Thomson Reuters I/B/E/S.

Tiffany's shares were up 2 percent at $102.74 in Wednesday premarket trading.

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Tiffany Boosts Full-Year Forecast on Improved 2Q Profit
For many employers, open enrollment season for some benefits happens in October. This usually sneaks up on some people, who scramble to decipher benefits and make elections last minute. Although you won't be able to see the options until the enrollment period opens, take time now to review your benefits. Are you taking advantage of any 401(k) matches? Are your fully funding your Flexible Spending Account? What about employer offered life and disability insurance? (A fun infographic from the Council for Disability Awareness shows your risks). Maximize your benefits and don't leave any money on the table.
Back-to-school time can be expensive if you're not prepared. Money is spent on clothes, books, supplies and technology -- and that's before the doors to the classroom have even opened. Before hitting the stores, do these two things:
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