Tiffany & Co. TIF produced mixed results for the second quarter. While its earnings came in above the estimates, sales missed expectations. The company maintained its full year revenue and EPS forecast.
The company reported net earnings of $106 million, or $0.84 a share, up 1 percent from $105 million, or $0.81 a share, in the year-ago quarter. On an adjusted basis, earnings would have dipped 5 percent from $111 million, or $0.86 a share. However, earnings topped by $0.12 a share from the Street analysts' expectations of $0.72.
Tiffany's worldwide net sales fell 6 percent to $932 million thus missing analysts' predictions of $934.74 million. Its comparable store sales witnessed 8 percent drop in the second quarter.
CEO Frederic Cumenal commented, "The global environment continues to reflect well known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists, especially from China. We are managing expenses efficiently, but also maintaining our marketing spending as a percentage of sales and continuing to invest in key strategic initiatives and opportunities to further strengthen Tiffany's competitive position among global luxury brands."
Moving ahead, the retailer maintained its full year net sales drop of a low-single digit percentage from the last year. Similarly, the company expects EPS to fall by a mid-single-digit percentage from $3.83 a share achieved in 2015. Street is looking for an EPS of $3.63 on revenue drop of 2.10 percent.
In the pre-market trading, the stock advanced $3.13, or 4.5 percent, to $72.00.
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