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Tiffany Sparkles Brighter as Weak Europe Offset by U.S, Asia Gains

Tiffany Sparkles Brighter as Weak Europe Offset by U.S, Asia Gains By Anirvan Ghosh 3 hours ago 0 shares Content preferences Done

tiffany and co Tiffany & Co. said second-quarter profit soared as sales were strongest in its largest markets. That offset a weaker Europe. The high-end jewelry retailer’s sales performed extremely well in the Americas and fast-growing Asia-Pacific where it managed to sell more high end items with significantly larger margins.

tiffany necklaces The stock rose 3.1% at the open before paring gains to 1.71%.

tiffany rings Investors see Tiffany’s performance as an indirect indicator that the economy is improving as affluent customers spend more, buoyed by a rising stock market.

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Net income rose 16% to $124.1 million, or 96 cents a share, in the three months ended July 31, from $106.8 million, or 83 cents, a year earlier, the New York-based company said in a statement today. Analysts had expected 85 cents.

Sales might have grown higher in Europe but for the strong pound and euro, which pinched customers. While Tiffany’s total sales rose 8% in the region, gains on constant exchange rate basis is just 1%. Also, same store sales declined 8% in the quarter, reflecting a weak market in continental Europe and the United Kingdom. Europeans and tourists who normally would have bought jewelry in those countries bought it elsewhere to take advantage of lower exchange rates.

Investors said CEO Michael Kowalski’s strategy of increasing sales by adding new designs and changing management seems to be working. Analysts, such as Robert Drbul of Nomura, said in a statement that new collections will drive sales during fall and winter.

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Investment & Company Information Finance Tiffany & Co. Europe