Tiffany & Co’s net income has spiked 50 per cent in the first quarter as worldwide sales jumped by double digits and the company boosted prices. The jeweller raised its earnings guidance for the year, sending shares up nearly nine per cent in early trading on Wednesday. “This is an excellent and encouraging start to the year,” said CEO Michael Kowalski. Tiffany, known for its iconic turquoise gift boxes, reported that net income rose to $US125.6 million ($A136 millio
n), or 97 cents per share, during the three months ended April 30.
That handily beat the 78 cents per share Wall Street was looking for and is up from $US83.6 million, or 65 cents per share, last year.
Valentine’s Day was a boost, Mark Aaron, Tiffany’s VP of investor relations, said in a call with analysts.
Revenue climbed 13 per cent to $US1.01 billion from $US885.5 million. Analysts expected $US953.7 million.
Stifel Nicolaus analyst David Schick said results were “impressive,” and showed that the company’s president, Frederic Cumenal, who joined Tiffany last year, is helping with “new energy and ideas for the business”.
Tiffany now expects a full year net income of $US4.15 to $US4.25 per share, up from $US4.05 to $US4.15 per share previously. Analysts had been projecting $US4.19 per share. The company expects revenue to rise in the high single digit percentage range.
In a call with analysts, new CFO Ralph Nicoletti said the company expects net income in the second quarter to be even with last year, due to uncertainty about when sales growth will resume in Japan and economic uncertainty in Europe. That implies net income of about 83 cents per share, lower than analysts’ expectation of 92 cents per share.
Shares of Tiffany rose $US7.53, or 8.5 per cent, to $US95.76 in early trading.
AP
