Investors Snap-Up Tiffany (TIF) Despite Lackluster Q2 Earnings, Oulook
Tweet
Share
E-mail
Get Alerts TIF Hot Sheet
Price: $131.46 --0%
Financial Fact:
Provision for income taxes: 50.4M
Today's EPS Names:
RIBT, INLB, FTXP, More
Financial Fact:
Provision for income taxes: 50.4M
Today's EPS Names:
RIBT, INLB, FTXP, More
Join SI Premium – FREE
Luxury jeweler Tiffany & Co. (NYSE: TIF) reported second results early on Monday and the results were unimpressive. However, with expectations very low into the results, investors are snapping up shares in pre-open action Monday.
For the second quarter the company reported revenue of $887 million compared to revenue of $873 million for the same period last year. Analysts were expecting revenue of $891 million.
Total sales in the Americas region declined 1 percent and comparable store sales declined 5 percent. Sales in Europe were also lower by 1 percent, partially due to currency adjustments, and comps increased 2 percent. In Asia, comp sales declined by 5 percent, pulling back from growth of 41 percent last year.
At 72 cents, Tiffany's EPS missed estimates by a penny and was down from 86 cents reported last year.
"...sales growth has been affected by economic weakness in a number of markets and by a very challenging prior-year comparison to a 30% increase in worldwide net sales<" commented CEO Michael J. Kowalski. "We also anticipated the reduced operating margin in the quarter, adjusted for nonrecurring items, due to continued, but moderating, high product input costs and a lack of sales leverage on fixed costs. The resulting decline in net earnings, when compared with last year’s earnings excluding nonrecurring costs, was in line with our expectations and was on top of a 58% increase in last year’s second quarter."
Tiffany trimmed fiscal 2012 earnings expectations from a range of $3.70 to $3.80 down to a new range of $3.55 to $3.70. The Street is at $3.64.
Shares of TIF last traded at $62.59, up percent.
For the second quarter the company reported revenue of $887 million compared to revenue of $873 million for the same period last year. Analysts were expecting revenue of $891 million.
Total sales in the Americas region declined 1 percent and comparable store sales declined 5 percent. Sales in Europe were also lower by 1 percent, partially due to currency adjustments, and comps increased 2 percent. In Asia, comp sales declined by 5 percent, pulling back from growth of 41 percent last year.
At 72 cents, Tiffany's EPS missed estimates by a penny and was down from 86 cents reported last year.
"...sales growth has been affected by economic weakness in a number of markets and by a very challenging prior-year comparison to a 30% increase in worldwide net sales<" commented CEO Michael J. Kowalski. "We also anticipated the reduced operating margin in the quarter, adjusted for nonrecurring items, due to continued, but moderating, high product input costs and a lack of sales leverage on fixed costs. The resulting decline in net earnings, when compared with last year’s earnings excluding nonrecurring costs, was in line with our expectations and was on top of a 58% increase in last year’s second quarter."
Tiffany trimmed fiscal 2012 earnings expectations from a range of $3.70 to $3.80 down to a new range of $3.55 to $3.70. The Street is at $3.64.
Shares of TIF last traded at $62.59, up percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GameStop posts higher income despite revenue drop in Q2 2026
- Dell (DELL) PT Raised to $505 at BofA Securities
- Baird Upgrades Titan Machinery (TITN) to Outperform
Create E-mail Alert Related Categories
Earnings, Guidance, Hot Earnings, Hot GuidanceRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
