Tiffany sales outshine Wall Street estimates
NEW YORK — Tiffany & Co. reported Friday that strong growth in the Asia-Pacific and European markets helped first-quarter profit rise 19% and said that it didn’t expect an improvement in the U.S. until later this year.
The New York-based jewelry retailer also raised its profit outlook for the year, based on a promising start, and said that it would open a smaller-store format in the U.S. as part of its worldwide expansion plans.
Tiffany said profit totaled $64.4 million, or 50 cents a share, in the three-month period that ended April 30. That’s compared with $54.08 million, or 39 cents, a year earlier. Sales rose 12% to $668.15 million.
The results beat the estimates of analysts polled by Thomson Financial who had expected earnings of 40 cents a share on sales of $649 million.
Tiffany shares rose 2.7%, or $1.29, to $49.03.
“We are pleased to start the year with sales and earnings growth above our expectations,†Chief Executive Michael J. Kowalski said in a statement. The strong gain in worldwide sales, despite only modest growth in the U.S., reflects “the benefit of globally diversified distribution,†he added.
Tiffany said it remained on track to meet full-year sales growth goals. It expects worldwide net sales to rise 10% in 2008. The retailer boosted net earnings per share projections to a range of $2.80 to $2.90. That’s up from March guidance of $2.75 to $2.85.
Analysts polled by Thomson Financial expect $2.73 a share for the year.
