High-end fine jewelry retailer Tiffany (TIF) reported stellar sales for the holiday quarter jumping 8.5% year-over-year to $1.33 billion, driven by a 10% sales increase in the Asia-Pacific region, mainly helped by the strong growth in China. The Americas region, which contributes to about half of Tiffany’s total sales, grew marginally for the quarter by about 2%, helping in the sales increase.
The company’s profit was impacted by a $146 million or $1.17 per share income tax charge related to the recent tax reforms. Consequently, earnings plunged 60.7% to $61.9 million or $0.50 per share. However, on an adjusted basis, the company reported earnings of $1.67 per share, up 15.1% year-over-year.
Comparable store sales rose 3% for the recently ended quarter. On a constant-exchange-rate basis, worldwide net sales rose 6% and comparable store sales were 1% above the prior year.
For the year 2017, Tiffany opened nine new stores, while it closed seven stores. At year-end 2017, the company had a total of 315 stores.
Outlook
Tiffany gave upbeat guidance for fiscal year 2018, with earnings per share expectation of between $4.25 and $4.45 and year-over-year net sales growth of mid-single digit percentage.