“Tiffany Earnings Sparkle Before Black Friday” |
| Tiffany Earnings Sparkle Before Black Friday Posted: 24 Nov 2010 09:22 AM PST Engagement rings and diamonds don't lose value during a recesion, as jeweler Tiffany & Co. can attest. The luxury retailer posted a $55.1 million third-quarter profit Wednesday that beat the Street's estimate thanks to sales growth in all regions. Ahead of the holiday season, Tiffany & Co. ( TIF - news - people ) saw its stock rally as investors rejoiced in a 27% jump in profit over the third quarter of 2009. Earnings per share came in at 43 cents, or 46 cents excluding one-time costs tied to relocating staff from its New York headquarters. The consensus analyst estimate called for EPS of 36 cents. Worldwide revenue was up 14% from a year ago, to $681.7 million and the jewelery chain's sales grew in all four of its geographic regions. Sales picked up the most in the Asia-Pacific and Europe regions, gaining 24% to $127.1 million and 22% to $77.5 million, respectively. Vice President Mark Aaron explained that engagement jewelry was one of the most popular products in those regions. Sales in the Americas, which include the U.S., Canada, Mexico, and Brazil, were up 9% to $331.8 million in the third quarter. In Japan, revenue was up 12% to $130.8 million. Michael Kowalski, chairman and CEO of Tiffany, said the retailer's success stemmed off its "expanding, globally diversified store presence," which operates 225 stores, up from 215 a year ago. In concert with Wednesday's upbeat earnings, Tiffany raised its year-end eanings guidance to $2.72-$2.77 per share, up its prior outlook of $2.60-$2.65. Worldwide sales are expected to increase by 12%, with double-digit growth expected in all regions but Japan. Tiffany's report comes as retailers prep for the all-important holiday season, with Black Friday, the first big date on the holiday calendar, just two days away. Amazon.com ( AMZN - news - people ), Best Buy ( BBY - news - people ), and Wal-Mart ( WMT - news - people ), all lower-price retailers, are getting ready to offer large discounts to juice the holiday season. Higher-end stores, like Tiffany, Nordstrom ( JWN - news - people ), and Saks ( SKS - news - people ), are less likely to offer big markdowns, but should still benefit from a more affluent customer base that was able to shake off the recession more quickly. Tiffany shares gained $2.82 or 4.8% to $61.09 in New York Wednesday morning. The Associated Press contributed to this report. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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