Tiffany & Co. (NYSE: TIF) released its fiscal first-quarter financial results before the markets opened on Wednesday. The company posted $1.14 in earnings per share (EPS) on $1.03 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.83 in EPS on revenue of $958.17 million. In the same period of last year, the luxury retailer said it had EPS of $0.74 and $899.6 million in revenue.
During the quarter, worldwide net sales rose 15%. Combined with a higher operating margin and a lower effective tax rate, that resulted in a 53% increase in net earnings. Comparable sales also increased 10% in this time.
As for its segments, the company reported as follows:
- Total net sales in the Americas increased 9% to $425 million and comparable sales rose 9%.
- Total net sales in the Asia-Pacific segment rose 28% to $329 million and comparable sales rose 14%.
- Total net sales in Japan rose 17% to $151 million and comparable sales rose 14%.
- Total net sales in Europe increased 13% to $107 million and comparable sales rose 2%.
Looking ahead to the fiscal full year, Tiffany expects to see EPS in the range of $4.50 to $4.70, net sales increasing by a high-single-digit percentage, and comparable sales growth in the mid-to-high-single-digits as well. The consensus estimates are $4.42 in EPS on $4.4 billion in revenue for the full year.
CEO Alessandro Bogliolo commented:
We are very pleased with this start to the fiscal year, and we are particularly encouraged by the breadth of sales growth across most regions and all product categories. Most importantly, however, we remain focused on achieving sustainable growth in comparable sales, operating margin and earnings by pursuing and investing in the six strategic priorities we put forward in March: Amplifying an evolved brand message; Renewing our product offerings and enhancing in-store presentation; Delivering an exciting omnichannel customer experience; Strengthening our competitive position and leading in key markets; Cultivating a more efficient operating model; and Inspiring an aligned and agile organization to win.
Shares of Tiffany traded up more than 15% to $117.94 just after Wednesday’s opening bell. The consensus analyst price target was $111.78, and the prior 52-week trading range was $84.15 to $111.44.