Tiffany & Co. raised its outlook for the year, after strong US and Asia sales yielded better-than-expected results.
Revenue rose 12% to $1.08 billion year on year in the second fiscal quarter ending July 31, while comparable-store sales — at branches open for at least a year — climbed 8%, the jeweler said Tuesday. Profit jumped 26% to $145 million.
The company now expects full-year sales to grow by high-single-digit percentages, as opposed to its earlier projection of mid-single-digits. The retailer also raised its guidance for net earnings to between $4.65 to $4.80 per share, from its previous range of $4.50 to $4.70. However, the jeweler expects strategic investment spending to rise due to output for new marketing campaigns and as renovations of its New York City flagship store get underway.
“While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reactions to our new communication, product and in-store initiatives,” said CEO Alessandro Bogliolo. “The launch of Paper Flowers…is moving toward full global distribution and we believe our evolved brand message is gaining momentum.”
Sales in the US and Asia buoyed Tiffany’s results, with increased spending by local consumers, as well as tourists, the company said. Revenue for the Americas jumped 8% year on year to $475 million, and in Asia Pacific rose 28% to $301 million for the three months ending July 31. Japan’s results climbed 11% to $155 million for the quarter.
Tiffany has launched several marketing campaigns during the period, running New York-themed ads featuring celebrities geared towards attracting a millennial audience. It also launched the Paper Flowers collection, the first by chief designer Reed Krakoff.
Tiffany share price rose nearly 7% following the results before the market opened on Tuesday.