Tiffany’s Q1 Earning Raises Hopes For Luxury Sector
Tiffany & Co., one of the biggest luxury retailers in the world, said that its fiscal first quarter earnings hit $81.1 million as sales of its gold and silver jewelry continued to surge across all regions worldwide.
Luxury retailer Tiffany & Co. on Thursday said that its net profit increased by a fourth in the first quarter of this year on stronger sales worldwide.
In a statement, the jewelry maker said that its net income hit $81.1 million or 63 cents per share for its fiscal first quarter, or 25 percent higher than the $64.4 million or 50 cents per share a year ago.
Tiffany’s net income, which includes 4 cents per share of expenses related to the relocation of its headquarters in New York, easily beat analysts’ expectations of 57 cents per share.
Immediately after the announcement, the company shares rose by 8.8 percent to $76.20 in the early hours of trading.
Meanwhile, the luxury brand’s revenue spiked up by 20 percent to $761 million from $633 million a year ago – the figures were higher than the earlier forecast of $702.6 million.
Mark Aaron, investor relations vice-president of Tiffany & Co., said that high-end gold and engagement jewelry items remained to be the top seller for the company, while sales of silver jewelry slowed down despite it being relatively lower priced.
“The US economic condition is directly affecting the spending of some of our customers, particularly in the silver jewelry section, which is at entry-level price,” Aaron said.