Tiffany Q3 Profit Up 50%, Results Top Estimates; Lifts FY Profit View

(RTTNews) - Luxury jeweler Tiffany & Co. (TIF) reported a 50% increase in net earnings in its third quarter ended October 31, 2013, largely resulting from 7% growth in worldwide net sales and a higher operating margin.

The company said that the strong earnings growth in the quarter led the company to increase its full year forecast.

Net earnings for the quarter rose to $94.61 million, or $0.73 per share, from $63.18 million, or $0.49 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales for the quarter increased about 7% to $911.48 million from last year's $852.74 million. Eighteen analysts estimated revenues of $889.51 million for the quarter. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 11%, and comparable store sales rose 7% due to growth in all regions.

The company raised its net earnings guidance for fiscal year ending January 31, 2014 to a range of $3.65-$3.75 per share, from the prior estimate of $3.50-$3.60 per share. This forecast excludes $0.05 per diluted share of expenses tied to specific cost-reduction initiatives that were recorded in the first quarter. Analysts project annual earnings per share of $3.62.

This forecast is based on assumptions that worldwide net sales will increase by a mid-single-digit percentage in U.S. dollars (a high-single-digit percentage increase on a constant-exchange-rate basis).