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

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Tags

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