Tiffany Jewelry Boca Raton
Tiffany & Co. reported earnings of 73 cents per share today. That beat expectations of 58 cents. That is a huge beat. Generally when a company beats expectations on earnings per share, it is much smaller. To beat by 26% is huge. That is one reason why the stock is up more than 8% today. Also, compared to last year’s earnings of 49 cents a share, it looks even better. Tiffany jewelry Boca Raton is selling more than expected.
Tiffany reported sales of $911.5 million in the quarter which is 7% higher than last year. Better performance in places like Asia and Europe helped sales plus the introduction of new jewelry designs. To break it down by region, sales in the US grew 4%, in the Asia-Pacific region they grew 27%, Japan fell 13%, but Europe increased 7%. Sales elsewhere grew 14%. 4 out of 5 regions had a significant increase in sales. Tiffany & Co.’s gross profit grew 11.9% to $519.5 million due to lower production costs and higher prices.
Tiffany plans to open 14 stores this fiscal year, 2013. That will help to increase sales around the world. They ended the quarter with over $500 million in cash and cash equivalents compared with around $1 billion in short and long term liabilities.
Because of these incredible results, Tiffany has updated its guidance for the rest of the year higher. They are projecting earnings of between $3.65 and $3.75 per share for the year compared with their previous estimate of $3.50 to $3.60.
It looks like Tiffany & Co. is capitalizing on an improving global economy. While the middle class seems to be stagnant, richer folks are doing quite well. Whenever you see a high end luxury brand beat expectations you can assume that upper class citizens are feeling better about the economy and spending more. While it doesn’t mean much for the middle or lower class, it does show some confidence in the global economy as a whole.
by, Seth Marcus at Boca Raton Pawn