Tiffany strikes gold as sales once again beat expectations
INTERNATIONAL - Tiffany & Co. is still shining bright on Wall Street.
The jeweler’s shares jumped after it reported sales that exceeded analysts’ estimates and raised its full-year forecast.
Tiffany is experiencing a renaissance after a lengthy period of same-store sales contraction that ended last holiday season. Chief Executive Officer Alessandro Bogliolo has been revamping the 181-year-old New York-based company to attract younger shoppers and spark new interest in the brand. More youthful advertisements and flashy products from design chief Reed Krakoff have succeeded in creating buzz that had been lacking in past years.
The shares rose as much as 7.9 percent in premarket trading. The stock had already climbed 25 percent this year through Monday’s close on the strength of the jeweler’s ongoing turnaround.
As part of efforts to overhaul the brand, Tiffany announced earlier this month that it would spend as much as 2 percent of its global net sales to remodel its 10-floor flagship store on Fifth Avenue in New York. Tiffany expects the renovation to be completed in the final quarter of 2021.
Worldwide same-store sales jumped 7 percent, after excluding currency swings. That’s better than the 5.6 percent projected by Consensus Metrix. In the Americas, comparable sales rose 8 percent, while sales in the Asia Pacific region excluding Japan were up 10 percent. Only Europe reported a decline, with the key metric falling 4 percent in that region, excluding currency impacts.
The company raised its full-year earnings outlook to $4.65 to $4.80 a share from a previous range of $4.50 to $4.70 as jewelry sales continue to grow. It expects global net sales to rise by a high-single-digit percentage for the year, compared to the year prior, even as it says earnings in the third quarter will be below the prior year.
Krakoff’s debut “Paper Flowers” collection, unveiled this spring, features bracelets, pendants and earrings ranging in price from $2,500 to $790,000. The company said Tuesday that it’s moving toward full global distribution for the new line, a floral collection in platinum and diamonds.