Tiffany Sees Higher Earnings, Sales In FY17 After Q4 Results Top View

(RTTNews) - Luxury jeweler and specialty retailer Tiffany & Co. (TIF) on Friday said it expects higher earnings and sales in fiscal 2017, after reporting fourth-quarter results above market estimates.

In pre-market activity on the NYSE, Tiffany shares were gaining 3.36 percent to $93.

Michael Kowalski, Chairman of the Board and Interim Chief Executive Officer, said, "Despite macroeconomic and geopolitical challenges in the past year that we believe will continue in 2017, we strongly believe that Tiffany's strategies are sound and that we have meaningful growth opportunities."

For fiscal 2017, the company expects net earnings per share to increase by a high-single-digit percentage over last year's reported earnings, and by a mid-single-digit-percentage over last year's adjusted earnings per share.

Worldwide net sales are expected to increase over the prior year by a low-single-digit percentage and by a mid-single-digit percentage on a constant-exchange-rate basis.

Further, operating margin is expected to be above the prior year entirely due to an expected increase in gross margin.

On average, analysts polled by Thomson Reuters expect earnings of $3.87 per share on sales of $4.09 billion for the year. Analysts' estimates typically exclude special items.

In the year 2016, the company's reported net earnings were $446 million or $3.55 per share, and adjusted net earnings were $470 million or $3.75 per share, with worldwide net sales of $4.0 billion. Gross margins were 62.2 percent and operating margins were 18 percent.

In the fourth quarter, Tiffany's net earnings were $157.8 million or $1.26 per share, compared with $163.2 million, or $1.28 per share in the prior year. Excluding charges, adjusted net earnings were $182 million, or $1.45 per share, compared to prior year's $187 million or $1.46 per share.

Worldwide net sales increased 1 percent to $1.23 billion from $1.21 billion last year. On a constant-exchange-rate basis, worldwide net sales rose 2 percent.

Comparable store sales were unchanged from the prior year.

Analysts were looking for earnings of $1.38 per share on sales of $1.22 billion for the quarter.

In the Americas, total sales declined 3 percent in the fourth quarter to $587 million, and comparable store sales declined 2 percent. Sales in Tiffany's New York flagship store declined 7 percent and represented less than 10 percent of worldwide net sales.

In the Asia-Pacific region, total sales were 9 percent above the prior year, benefiting from the opening of new stores, with comparable store sales declining 2 percent.

In Japan, total sales rose 15 percent and comparable store sales increased 19 percent. In Europe, total sales were 7 percent below the prior year and comparable store sales declined 9 percent.