Tiffany Q2 Results Top View, Lifts Full Year EPS Forecast

(RTTNews) - Jewellery retailer Tiffany & Co. (TIF) Wednesday said second-quarter profit increased from the prior year, amid growth in sales and a higher gross margin. Both earnings and revenues topped Wall Street estimates. The company raised its earnings forecast for the year by five cents per share.

Michael Kowalski, CEO, said, "These healthy second quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions. In addition, an improved gross margin was an important contributor to the earnings growth."

Net earnings climbed to $124.12 million or $0.96 per share from $106.78 million or $0.83 per share in the prior year.

On average, 26 analysts polled by Thomson Reuters expected earnings of $0.85 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales increased 7 percent to $992.93 million from $925.88 million. Analysts expected revenues of $987.88 million.

On a constant currency basis, worldwide net sales increased 7 percent and comparable store sales advanced 3 percent, largely due to growth in the Americas and Asia-Pacific regions.

In the Americas, total sales rose 9 percent to $484 million and were 10 percent higher when currency impact is excluded. Comparable store sales were grew 8 percent.

In Asia-Pacific, total sales increased 14 percent to $237 million, amid strong growth in Greater China and Australia.

Gross margin increased to 59.9 percent from 57.5 percent in the previous year.

Looking ahead, for the fiscal year ending January 31, 2015, the firm expects net earnings in a range of $4.20 to $4.30 per share, compared to the previous forecast of $4.15 to $4.25 per share. The forecast assumes a high-single-digit percentage growth in worldwide net sales. Analysts expect full year earnings of $4.29 per share.

The stock closed up 0.5 percent on the NYSE on Tuesday at $100.77, and is gaining 1.7 percent in pre-market activity.