Tiffany restores luster with Wall Street
The luxury retailer's earnings exceed analysts' low expectations. It hopes to get help this year from 'The Great Gatsby' film release.
So Wall Street scaled back its quarterly expectations -- and Tiffany managed to exceed them Friday.
Earnings for the New York retailer, though, were not great. Net income rose less than 1% to $179.6 million, or $1.40 per share, compared with $178.3 million, or $1.39 per share, a year earlier. Revenue rose 4% to $1.2 billion, helped by a 13% increase in the Asia Pacific region and gains in North America. The company's New York flagship and U.S. stores opened at least a year both showed declines, indicating that high-end consumers continue to be cautious when it comes to discretionary spending. For a closer look at the numbers, click here.
"Clearly, we were not pleased with Tiffany's financial results in 2012, which are not representative of how our company should perform in a more normalized operating environment," Kowalski told Wall Street analysts during the earnings conference call.
Tiffany has high hopes for its new line of sterling silver jewelry priced below $500 and higher-end diamond and platinum designs timed to debut with this year's release of "The Great Gatsby" film starring Leonardo DiCaprio. It also is adding to its collection of leather bags and other accessories. In addition, Tiffany plans to add 15 new stores, including five in the U.S.
Talk of the sequester notwithstanding, consumer confidence continues to rise. Happy days may not be here again yet for Tiffany, but things are looking better for the iconic company than they have in a while.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
- Invest like Warren Buffett with this app
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages climbed out of the gate with the Dow Jones Industrial Average in the lead. The blue chip index trades higher by 0.4%, while the S&P 500 has added 0.3% with all ten sectors showing early gains.
Cyclical sectors have displayed noteworthy strength with five of six growth-oriented groups trading in-line with or ahead of the broader market. However, the technology sector (+0.1%) has yet to catch up to the broader market. Oracle (ORCL 40.10, -1.45) ... More
More Market News
Traders might want to bite on BABA, but long-term investors have reasons to wait.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'