Tiffany Results Shine; Jeweler Reaffirms Forecast
Tiffany reported higher-than-expected sales on Tuesday for the first quarter that included Valentine's Day, helped by gains in all regions and promotions around the jeweler's 175th anniversary and the "The Great Gatsby" motion picture.
The results beat Wall Street expectations, and its shares rose more than 6 percent in pre-market trading. (Click here to track the company's stock before the opening bell.)
The high-end jewelry company known for its blue boxes earned $83.6 million, or 65 cents per share, for the period ended April 30. That's up from $81.5 million, or 64 cents per share, a year ago.
(Read More: Great Gatsby Mania Spawns Retail Lines)
Excluding costs tied to staff and occupancy cuts, earnings were 70 cents per share. This easily beat the 53 cents per share analyst expected.
Revenue for the New York company rose 10 percent to $895.5 million from $819.2 million, topping Wall Street's $855.7 million estimate.
(Read more: Geneva Auction Sells Huge Diamond for $26.7 Million)
Sales increased 9 percent globally to $895 million. The conversion of five Tiffany stores in the United Arab Emirates to company-run stores from independently run stores in July helped other sales triple to $27 million. Sales for the Asia-Pacific region rose 15 percent to $223 million.
In the Americas, sales climbed 6 percent to $408 million. European sales also increased 6 percent to $93 million, while sales in Japan rose 2 percent to $145 million.
For the second quarter, Tiffany anticipates earnings will be equal to the prior-year period's 72 cents per share. Analysts expect 79 cents per share.
But Tiffany reaffirmed its fiscal 2013 earnings forecast of $3.43 to $3.53 per share on Tuesday. Wall Street predicts $3.48 per share.
Chairman and CEO Michael Kowalski said in a statement that the chain was sticking with its guidance because of ongoing soft sales in the Americas and the weaker yen.
The company had 275 stores at quarter's end.