Tiffany's raises full-year outlook after surprise quarter
Upscale jeweller Tiffany's revealed a stronger-than-expected set of figures on Tuesday, leading the group to raise its full-year earnings outlook.
Tiffany & Co.
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14:25 11/03/24
In the second quarter of the year, Tiffany's saw its worldwide net sales rise 12% year-on-year to $1.1bn, something the firm said was thanks to broad-based growth across each of its geographic and product segments.
Net earnings jumped 26% to $145m, or $1.17 a diluted share, well ahead of estimates of $123.28m, or $1.00 a share.
Tiffany's gross margin improved to 64%, up from 62.5% a year earlier, due to a lift from decreased diamond wholesales that helped to offset its increased investment spending.
Chief executive Alessandro Bogliolo, who has been trying to attract millennials with the new look Tiffany's, said: "While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reactions to our new communication, product and in-store initiatives.
"We are pleased with our sales and earnings growth and the strength and breadth of the results in the first half of 2018, but it's worth noting that strategic investment spending is increasing for the remainder of the year, as expected, which is intended to support longer-term sustainable growth."
As a result of the strong quarter, Tiffany's said it now expects net earnings per diluted share to come in somewhere between $4.65 and $4.80, up from its previous forecast of $4.50 to $4.70.
As of 1430 BST, Tiffany's shares had jumped 6.25% to $137.89 each.