Tiffany Beats with Higher Guidance
Shares of Tiffany (NYSE:TIF) traded straight to the upside on Tuesday morning following what was an impressive quarter that put concerns of a weak consumer away. Over the last couple weeks, questions regarding the strength of the consumer have surfaced as a number of prominent retail names have reported weaker than anticipated results.
The infamous jeweler reported its global sales rose 7 percent to $911.5 million in the third quarter ended Oct. 31. These results came in well above analysts expectations which predicted only $889.5 million. Moreover, on a comparable sales basis, Tiffany watched its sales rise by 7 percent. On the bottom line the company reported net income of $94.6 million, or 73 cents per share, compared with $63.2 million, or 49 cents per share, a year earlier. In comparison to its third quarter of last year, earnings rose by an astounding 49.5 percent.
Management from the company would go onto ensure its shareholder base strong continued results for the remainder of the year. Tiffany raised its full-year profit forecast by 15 cents per share to a range of $3.65 to $3.75.The company believes it will see its net sales worldwide increase by a mid-single-digit percentage rate for the fiscal year. Heading into the holiday season all eyes will be concentrated on preliminary sales data. Some analysts have predicted weak year over year growth in holiday sales. However, Tiffany does cater to the higher end consumer as its product carry hefty price tags to say the least.
Strong results from Tiffany in contrast to weak results from a low end consumer favorite like Walmart would showcase the growing divide between classes. Strong equity markets and real estate prices have helped the higher end consumer bolster spending for much of the year. At the time of this writing, shares of the company were higher by a remarkable 8 percent amid a flat broad market.
Sorry. No data so far.