Tiffany (TIF) Stock Up On Q2 Earnings Beat And Higher View

Tiffany & Co. TIF reported second-quarter fiscal 2018 results, which marked the company’s fifth straight quarter of positive earnings and sales surprises. Moreover, both the top and bottom lines continue to improve year over year. The solid results also called for an upbeat earnings view for fiscal 2018. In fact, the stock has gained 47% in a year, outperforming the industry’s growth of 34%.

Q2 Highlights

The company’s quarterly earnings came in at $1.17, which comfortably beat the Zacks Consensus Estimate of $1.00. The bottom line surged roughly 27% year over year, courtesy of higher sales, gross margin expansion and reduced effective tax-rate, partially offset by increased investment spending.

Net sales came in at $1,075.9 million, up almost 12% from $959.7 million in the prior-year quarter. The reported figure also outperformed the Zacks Consensus Estimate of $1,039 million. Notably, the top line gained from sales improvement across all product categories and regions. Also, the company’s comparable-store sales (comps) went up 8%. In constant currencies, worldwide net sales rose 11%, while comps improved by 7%.

Sales across Jewelry Collections, Engagement Jewelry and Designer Jewelry grew 18%, 8% and 5%, respectively. Sales also increased in watches and in other non-jewelry categories.

Tiffany remains focused on evolving its brand, enhancing omni-channel experience, solidifying position in core markets, increasing operating model efficiency and enriching overall organization. The company remains committed to elevating in-store experience and replenishing product portfolio. Focus on renewing product portfolio is evident from the launch of PAPER FLOWERS, which comprises solid collection in diamonds and platinum.

Tiffany & Co. Price, Consensus and EPS Surprise