RAPAPORT... Tiffany & Co. raised its sales outlook for the year after higher spending in the US and Asia drove a 15% jump in quarterly revenue.
Revenue rose to $1.03 billion year on year for the first fiscal quarter ending April 30, while comparable store sales — at branches open for at least a year — climbed 10%, it said Wednesday. Based on that, the company now expects global sales growth in the high-single-digit percentages for the fiscal year ending January 31, 2019, versus its earlier projection of a mid-single-digit increase, it said.
It also raised its outlook for comparable sales, predicting mid- to high-single-digit growth for the fiscal year. It previously expected comparable sales to rise by a low- to mid-single-digit percentage.
“We are particularly encouraged by the breadth of sales
growth across most regions and all product categories,” said Alessandro
Bogliolo, Tiffany’s CEO. “Most importantly, however, we remain focused on
achieving sustainable growth in comparable sales, operating margin and earnings
by pursuing and investing in the six strategic priorities we put forward in
March.”
Higher spending by locals and tourists fueled the increase
in sales in the US and Asia. Revenue for the Americas jumped 9% year on year to
$425 million, and in Japan rose 17% to $151 million. Revenue in the Asia Pacific region climbed
28% to $329 million for the quarter due to increased retail sales in greater China
and most other markets, as well as higher wholesale sales in Korea, the company
said.
Profit for the period soared 53% to $142.3 million. Its share price rose 15% in early trading Wednesday.
The jeweler also announced a share-repurchase program, under
which it will buy back $1 billion of its common stock, it said.
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