Categories Earnings, Retail

Tiffany likely to see profit dip in Q2, but market remains bullish

Tiffany & Co. (TIF) is set to report its second quarter 2018 earnings results on August 28. For the first quarter, the company reported solid results with a 15% increase in sales and an earnings growth of over 50%. Comparable sales grew 10% with strength across all jewelry categories.

The company also reported sales increases across all its geographical regions, with the highest growth of 28% in Asia-Pacific fueled by strong retail sales in China and Korea. In the Americas, sales growth was driven by higher spending by locals and tourists. Favorable exchange rates benefited sales growth last quarter but this is expected to change this time.

Favorable exchange rates benefited sales growth last quarter but this is expected to change this quarter

For the second quarter of 2018, analysts expect Tiffany’s sales to increase more than 8% year-over-year to come in at $1 billion. Adjusted EPS is expected to grow more than 9% to $1.01.

Although the projected profits are lower than last quarter due to pressures from exchange rates and other economic factors, Wall Street appears to be optimistic on the company’s overall health and ability to rebound going forward.

Tiffany has plans to roll out some new designs and collections and to invest more in several areas. Although these investments are likely to increase the expense level, they are expected to bring benefits going forward.

Tiffany’s shares climbed 12% after the release of its first quarter results. The stock is up 3% over the past three months and 25% year-to-date.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top