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.