Tiffany & Co.'s earnings and revenue fell less than expected
in its first quarter as a key sales metric grew across nearly every
region, despite the continued impacts of a strong U.S. dollar.
Shares of Tiffany, down 13% over the past 12 months, gained 7.1%
to $91.60 in premarket trading as the jeweler also backed its
full-year outlook.
Tiffany's foreign revenue has been hit in recent months by a
strengthening U.S. dollar, which also dented tourist spending in
the U.S. The company's Japanese business also has been hit by weak
economic conditions.
The company said in March that it expected to face pressure in
the first half of the year followed by double-digit earnings growth
in the latter half. Tiffany maintained its outlook for the year
Wednesday.
For the quarter ended April 30, Tiffany posted earnings of
$104.9 million, or 81 cents a share, compared with $125.6 million,
or 97 cents a share, a year ago.
Tiffany had forecast a 30% earnings decline.
Sales fell 4.9% to $962.4 million, coming in above the company's
March forecast for a 10% decline. Excluding foreign-exchange
impacts, sales would have been up 1%.
Analysts projected 70 cents a share in earnings and $918.7
million in revenue, according to Thomson Reuters.
In Tiffany's Americas division, same-store sales were up 1%, as
strong sales to U.S. customers helped offset lower foreign tourist
spending.
The Asia-Pacific division had a 2% increase in same-store sales,
helped by growth in China, Australia and Singapore. In the
company's Europe division, same-store sales grew 17% as foreign
tourists spent more abroad.
However, at the Japan division, same-store sales dropped 24%,
hurt by continued weakness and a difficult comparison to a strong
prior-year period.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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