Tiffany Q1 Profit Climbs On Higher Sales & Margins; Boosts FY EPS View

(RTTNews) - Luxury jeweler Tiffany & Co. (TIF) reported a 50% growth in earnings for the first quarter, helped by 13% higher sales and improved operating margins. Also, the firm raised its earnings forecast for the current fiscal year.

For the quarter, net earnings, on a reported basis, advanced by 50% to $126 million, or $0.97 per share, from $84 million, or $0.65 per share, last year when pre-tax expenses of $9 million, or $0.05 per share, were recorded for staff and occupancy reductions. On average, 24 analysts polled by Thomson Reuters expected earnings per share of $0.78 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly worldwide net sales rose 13% to $1.01 billion, from $895.48 million in the previous year, whereas 20 analysts estimated revenues of $955.05 million. On a constant-exchange-rate basis, excluding the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales grew by 15% and comparable-store sales up by 11%, owing to growth in most regions.

For the fiscal year ending January 31, 2015, the firm now sees net earnings in a range of $4.15 - $4.25 per share, versus its previous forecast of $4.05 - $4.15 per share. Analysts project annual earnings per share of $4.17.

Full-year worldwide net sales are expected to grow by a high-single-digit percentage, with all regions likely to achieve growth in their total sales in U.S. dollars and in comparable-store sales on a constant-exchange-rate basis.