Upscale jeweller Tiffany & Co 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 per cent in premarket trading on Wednesday.
“We were ... pleased with solid performance across most product categories, ranging from the success of perennial classics in fine, statement and engagement jewellery to our newest Atlas collection,” Chief Executive Michael Kowalski said in a statement.
Lower-priced jewellery such as the Atlas collection – a range of silver jewellery 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 per cent in the second quarter ended July 31.
Same-store sales in the Asia Pacific region grew 7 per cent, 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 per share from $4.15-$4.25.
The company’s net income rose 16 per cent to $124.1-million, or 96 cents per share, in the second quarter.
Net sales rose 7.2 per cent to $992.9-million on a constant currency basis. Total comparable-store sales rose 3 per cent.
Analysts on average had expected a profit of 85 cents per share on revenue of $987.9-million, according to Thomson Reuters I/B/E/S.
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