New York, NY, United States (4E) – Tiffany & Co. said it posted second-quarter profit that surpassed Wall Street’s estimates on the back of falling costs and rise in prices, prompting the world’s second-biggest luxury jewelry retailer to raise its annual earnings forecast.
Profit was at $106.8mn, or 83 cents a share, for the quarter ended July 31, compared with the $91.8mn profit, or 72 cents a share, a year ago. The average estimate of 22 analysts surveyed by Bloomberg News offered per-share earnings of 74 cents.
Sales rose 4.4 percent to $925.9mn, or around 8 percent excluding the impact of currency changes.
Tiffany is boosted by rising stock prices that are encouraging its affluent customers to spend on discretionary goods. Shoppers are also drawn to its stores because of new jewelry designs as seen on the “The Great Gatsby” movie.
Tiffany increased its per-share earnings estimate for the full year to $3.50 to $3.60 range from its previous forecast of $3.43 to $3.53.
Chief Executive Michael J. Kowalski praised the company’s efforts to improve its gross margin, after it widened to 57.5 percent from 56.3 percent a year earlier.
In terms of region, the Tiffany posted a 2 percent rise in sales in the Americas region, a 20 percent gain in Asia-Pacific and an 11 percent increase in Europe. Sales in Japan fell 14 percent, though they jumped 7 percent on a constant currency basis.