Tiffany sets bigger Q2 profits than expected

Tiffany  today reported its financial results for the three months (“second quarter”) and six months (“first half”) ended July 31, 2017. In both periods, modest net sales increases and improved operating margins contributed to growth in diluted earnings per share. Management maintained its sales and earnings guidance for the full year ending January 31, 2018 (“fiscal 2017”), and provided guidance for the second half of the year.

The company's shares rose 3 percent to $91.40 before the bell on Thursday.

The New York-based retailer said it also benefited from sales of high-margin jewelry, such as the Tiffany T collection, which was first crafted by its former design director Francesca Amfitheatrof. The collection features items such as the $10,500 square bracelet with pave diamonds in 18k white gold.

Sales at established stores open for more than a year fell 2 percent, steeper than the 1 percent fall expected by analysts polled by research firm Consensus Metrix.

Comparable sales in the Americas, its biggest market, fell 1 percent due to lower tourist spending and weak demand across categories other than fashion and designer jewelry.

Net income rose to $115 million, or 92 cents per share, in the second quarter, from $105.7 million, or 84 cents per share, a year earlier. Analysts had expected the company to earn 84 cents per share.