Tiffany & Co. Quarterly Earnings: Profits Jump 19%
For the quarter that ended July 31, Tiffany said its net profit rose to $67.7 million, or 53 cents a share, from $56.8 million, or 46 cents a share, a year earlier. Earnings matched analysts' expectations, according to FactSet.
Revenue grew 9% to $668.8 million, below analysts' estimates of $691.7 million. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 8% and comparable store sales rose 5%.
Tiffany said revenue increased across most regions, with sales in the Americas rising 8% to $350.4 million, sales in Asia soaring 21% to $111.5 million, and sales in Europe jumping 14% to $76.9 million. Sales at the New York flagship store rose 8%.
The company also improved its margins, recapturing higher product costs through retail price increases and improved manufacturing efficiencies, and benefited from a decline in wholesale sales of rough diamonds.
Tiffany raised its full-year 2010 profit forecast by 10 cents per share to a range of $2.60 to $2.65, and said it expects an 11% global sales growth. That's in line with the average Wall Street estimate, which forecast $2.61 per share.