Tiffany & Co.'s (TIF) fiscal second-quarter net profit rose 19% thanks to solid growth in most regions, the company reported Friday. The jewelry store chain also raised its earnings outlook for the full year.
For the quarter that ended July 31, Tiffany said its net profit rose to $67.7 million, or 53 cents a share, from $56.8 million, or 46 cents a share, a year earlier. Earnings matched analysts' expectations, according to FactSet.
Revenue grew 9% to $668.8 million, below analysts' estimates of $691.7 million. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 8% and comparable store sales rose 5%.
Tiffany said revenue increased across most regions, with sales in the Americas rising 8% to $350.4 million, sales in Asia soaring 21% to $111.5 million, and sales in Europe jumping 14% to $76.9 million. Sales at the New York flagship store rose 8%.
The company also improved its margins, recapturing higher product costs through retail price increases and improved manufacturing efficiencies, and benefited from a decline in wholesale sales of rough diamonds.
Tiffany raised its full-year 2010 profit forecast by 10 cents per share to a range of $2.60 to $2.65, and said it expects an 11% global sales growth. That's in line with the average Wall Street estimate, which forecast $2.61 per share.
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