By Devika Krishna Kumar and Ramkumar Iyer
Upscale jeweler Tiffany & Co. (TIF) raised its full-year profit forecast for a second time following a better-than-expected quarterly profit, driven by strong sales in the Americas and Asia-Pacific regions.
Shares of Tiffany, known for its Blue Boxes and its Fifth Avenue flagship store in Manhattan, rose as much as 4.8 percent in premarket trading Wednesday.
"We were ... pleased with solid performance across most product categories, ranging from the success of perennial classics in fine, statement and engagement jewelry to our newest Atlas collection," Chief Executive Officer Michael Kowalski said in a statement.
Lower-priced jewelry such as the Atlas collection -- a range of silver jewelry including lariats and pendants priced below $500 -- nets Tiffany higher margins than its more expensive pieces, for which it is famous.
The company said comparable-store sales in the Americas region, which accounts for nearly half of Tiffany's overall sales, rose 8 percent in the second quarter ended July 31.
Same-store sales in the Asia Pacific region grew 7 percent, driven by strong demand in Greater China and Australia.
Tiffany raised its earnings forecast for the year ending Jan. 31 to $4.20-$4.30 a share from $4.15-$4.25.
The company's net income rose 16 percent to $124.1 million, or 96 cents a share, in the second quarter.
Net sales rose 7.2 percent to $992.9 million on a constant currency basis. Total comparable-store sales rose 3 percent.
Analysts on average had expected a profit of 85 cents a share on revenue of $987.9 million, according to Thomson Reuters I/B/E/S.
Tiffany's shares were up 2 percent at $102.74 in Wednesday premarket trading.
Tiffany Boosts Full-Year Forecast on Improved 2Q Profit
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