- Gross margin rose to 58.3% from 57.8%. Total same-store sales rose 19%, or 15% on a constant-exchange-rate basis.
Tiffany beat estimates by 10 cents (67c v 57c estimate), beat on revenue ($761M v $704M estimate) and raised year end targets (Jan 2012) to $3.45-$3.55 vs $3.33 estimate. Japan performed much better than expected this quarter [partly due to currency USD v Yen] which seems to be where the analysts (and Tiffany itself) were off in estimating. Full report here.
- Tiffany & Co said sales in Japan have picked up more quickly than expected after the March earthquake, and the upscale jeweler raised its full-year profit forecast. Globally, sales rose 20 percent to $761 million in the first quarter, with the largest gains in Asia outside Japan and in the Americas.
- Overall sales in Japan, where the chain operates 57 stores, rose 7 percent during the quarter. Tiffany, which gets 18 percent of its sales in Japan, had forecast in March that sales there would fall 15 percent during the quarter as a result of Japan's massive earthquake and the tsunami and nuclear disaster that followed. Sales at Japan stores open at least a year fell 3 percent, but Tiffany said all of its stores there that had closed after the quake have reopened.
- Sales in Asia outside Japan rose 37 percent, while in the Americas, they were up 19 percent.
- At Tiffany's flagship store on Manhattan's Fifth Avenue, sales rose 23 percent.
- Tiffany forecast on Thursday that global net sales would rise by a mid-teens percentage in the current quarter.
- Net income rose 25.8 percent to $81.1 million, or 63 cents per share, from $64.4 million, or 50 cents a year earlier. Excluding one-time items, Tiffany earned 67 cents a share, beating Wall Street forecasts of 57 cents, according to Thomson Reuters I/B/E/S.
- Tiffany raised its full-year profit outlook by 10 cents and now expects to earn between $3.45 and $3.55 per share in the fiscal year that ends in January 2012. That compares with Wall Street forecasts of $3.33.
[Nov 24, 2010: All that Glitters is the High End US Consumer, and Foreign Buyers]