Jewelry retailer Tiffany 1Q profit rises
\nAP via Yahoo! News\u00c2\u00a0<\/p>\n
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NEW YORK – Jewelry and luxury goods retailer Tiffany & Co. said Wednesday that first-quarter earnings grew 7.7 percent, as double-digit percentage growth in international sales outpaced a sluggish domestic sales performance. Its shares rose 2.6 percent in early trading.For the quarter ended April 30, the company’s earnings rose to $43.14 million, or 30 cents per share, from $40.06 million, or 27 cents per share a year earlier. The year-ago period included a 1-cent-per-share tax benefit.<\/p>\n
Sales increased nearly 6 percent to $539.2 million from $509.9 million. The company said domestic sales were “disappointing,” with overall growth up 2 percent and sales down 1 percent at locations open at least one year, a measure known as same-store sales. In contrast, international sales jumped 13 percent, helped by growth in Japan and other regions, and international same-store sales rose 16 percent.<\/p>\n
Analysts polled by Thomson Financial expected earnings of 28 cents per share on sales of $546.8 million.<\/p>\n
Its shares rose 85 cents to $33.35 in morning trading on the New York Stock Exchange, but are still closer to the low end of their 52-week range of $31.05 to $43.80.<\/p>\n
The company said gross margin improved to 55.8 percent from 53.9 percent in the previous year, mainly because of its product sales mix and some benefit from geographical sales mix.<\/p>\n
“Sharply higher precious metal and diamond costs continue to pressure gross margin, although the company periodically adjusts retail prices to mitigate such effects,” Tiffany said in a statement.<\/p>\n
For the full year, Tiffany said it still expects at least 12 percent growth in earnings before income taxes, and earnings of $1.77 to $1.82 per share. The company forecast sales growth of nearly 10 percent, assuming gradual improvement in the United States and strong international sales growth.<\/p>\n
Analysts expect the company to earn $1.80 per share on sales of $2.61 billion for the year.<\/p>\n
“Continued increases in precious metal costs will likely have some adverse effect on gross margins, but we expect full-year gross margin to approximate the prior year,” Tiffany said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Jewelry retailer Tiffany 1Q profit rises AP via Yahoo! News\u00c2\u00a0 NEW YORK – Jewelry and luxury goods retailer Tiffany & Co. said Wednesday that first-quarter earnings grew 7.7 percent, as double-digit percentage growth in international sales outpaced a sluggish domestic sales performance. Its shares rose 2.6 percent in early trading.For the quarter ended April 30, […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[411],"tags":[],"yoast_head":"\n