9:25 AM, Aug 28, 2019 — Tiffany’s & Co (TIF) reiterated its full-year guidance on Wednesday as it posted mixed second-quarter results with revenue and adjusted earnings per share felling year-on-year while both metrics surpassed analysts’ estimates.
The jewelry company reported revenue of $1.05 billion in the three months ended July 31, down from $1.08 billion in the corresponding quarter of the prior year. This was ahead of the consensus estimate of analysts compiled by Capital IQ for $1.06 billion.
Diluted adjusted earnings per share came to $1.12, down from $1.17 a year earlier and also comfortably ahead of the Street’s forecast for $1.04.
The company said the drop in earnings reflected lower operating margins, a higher effective income tax rate for the second quarter and a lower effective income tax rate for the first half, in each case, as compared to the prior year.
“Our second quarter and first-half results were mixed with sales coming in below, but net earnings exceeding, our expectations,” said Chief Executive Alessandro Bogliolo. “As with the first quarter, we are encouraged in the second quarter by sales growth attributed to our local customer base globally, which was again led by double digit growth in mainland China”.
Bogliolo said that with the tough comparison to last year’s strong performance in the first half behind the company, and in spite of the headwinds of weak demand from foreign tourists, currency exchange rate pressures and continuing business disruptions in Hong Kong, the company is actively managing what is in its control and is accelerating new product introductions.
For the full year, the company is targeting worldwide net sales increasing by a low-single-digit percentage over the prior year and net earnings per diluted share increasing by a low-to-mid-single-digit percentage over the prior year.
Companies: Tiffany & Co.
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