Tiffany profit rises on sales gains in China, forecast raised

Tiffany & Co  on Tuesday reported a higher quarterly profit, helped by stronger-than-expected sales in China that trumped fears of a slowdown there, and the United States jeweler raised its full-year forecast.Shares of Tiffany rose two per cent to $83.30 in trading before the market opened.Global sales rose 4.4 per cent to $925.9m  in the second quarter ended July 31, below the $941.4m  analysts were expecting, according to Thomson Reuters.

The depreciation of the yen hurt results in Japan, where Tiffany gets about 20 per cent of its sales.Sales at stores open at least a year rose five percent globally, in line with analysts’ estimates. Brisk business in China fueled a 13 per cent  gain in Asia outside Japan, well above estimates.

Same-store sales rose seven per cent  in Europe, excluding currency fluctuations, and were unchanged in the Americas.

Tiffany reported net income of $106.8m,  or 83 cents per share, compared with $91.8m, or 72 cents per share, a year earlier.

The profit was 9 cents more than analysts expected, helped by lower pressure from diamond and gold prices.

Also, Tiffany said its price increases did not deter shoppers.The company now expects a profit of $3.50 to $3.60 per share this fiscal year, 7 cents more than its previous forecast range.

Tiffany still expects net sales worldwide to increase by a mid-single-digit percentage rate, including the effect of the strong U.S. dollar.

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