Tiffany (TIF) Shares Up 9% on 3Q Earnings
Shares of Tiffany & Co. (TIF) closed up +7.03 or +8.68 percent to $88.02 per share on Tuesday, after the company reported a 50 percent increase in net earnings for Tiffanyâ s third quarter ended on October 31st,, 2013. The improvement in earnings was in part due to a large increase in Asia-Pacific region sales. Sales in Asia showed the most growth, however the company showed growth in all other regions, with worldwide net sales increasing +7 percent to $911 million on a constant exchange rate basis, which excluded the effects of translating sales denominated in foreign currency to U.S. Dollars.
The analyst consensus was for third quarter net sales to be $889.5 million.
New York City based Tiffany & Co., founded in 1837 is a U.S. multinational jeweler and luxury retailer. Through its stores and direct-mail marketing, the company sells jewelry, china, crystal, sterling silver, fragrances, stationary and personal accessories. TiffanyÃƒÂ¢ s flagship store is located at the corner of Fifth Avenue and 57th Street in Manhattan, New York City. Tiffany has met the slowdown in its two principal markets, the United States and Japan, by expanding into the Chinese market, which is currently the second largest market for luxury goods in the world. TiffanyÃƒÂ¢ s showed a 22 percent rate of growth for comparable sales in the region and will have a total of 29 stores operating in China by the end of the year. This compares to comparable sales in the United States, which increased only one percent. Worldwide sales on a non-GAAP basis rose 11 percent with comparable store sales increasing by 7 percent. Net earnings for the company rose +20 percent to $285 million, or +$2.21 per diluted share, with total sales in the Asia Pacific region increasing +27 percent to $238 million in the third quarter with year to date sales climbing to $670 million. Sales in the Americas region increased by +4 percent to $417 million, with European sales gaining by +7 percent to $104 million, Japanese sales rose 9 percent on a constant exchange rate basis, however weakness in the yen versus the dollar caused total sales to decline 13 percent to $128 million. Tiffany also raised its full year profit by 15 cents to $3.65-$3.75 per share. In a press release, chairman and chief executive officer Michael Kowalski stated, "We are very pleased with our overall results. Worldwide sales growth in the quarter demonstrated the growing power of the Tiffany & Co. brand and the benefits of our expanding global presence. Operating earnings rose faster than sales, reflecting favorable product cost trends and ongoing well-controlled expenses. We're experiencing excellent customer response to our expanded fashion jewelry designs, highlighted by the Atlas collection, as well as continued growth in our fine and statement jewelry, with particular strength in our yellow diamond collection." Tiffany & Co. sales during the coming holiday shopping season will more than likely improve, given the level of the stock market and TiffanyÃƒÂ¢ s well-healed clientele. The companyÃƒÂ¢ s stock, while at the high end of its yearly range could continue higher. Other News About Tiffany $ Co. Tiffany Declares Regular Quarterly Dividend
Company announces $0.34 quarterly dividend. Tiffany Obtains Permanent Injunction and Large Award against Counterfeiters
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Published on Nov 27, 2013
By Jay Hawk