Tiffany & Co.(NYSE: TIF) has reported the adjusted earnings per share of $1.45 in the fourth quarter 2016, beating the analysts’ estimates for the adjusted earnings per share of $1.38. Hence, the stock surged over 2.8% this morning (as of 11:22 AM EDT on March 17th, 2017; Source: Google finance). The company had reported the adjusted revenue growth of 1.3 percent to $1.23 billion in the fourth quarter 2016, beating the analysts’ estimates for revenue of $1.22 billion. TIF has opened 11 company-operated stores in the fiscal 2016 and has closed five stores. The company has ended the fourth-quarter with 313 stores in 28 countries, 125 of which are located in North America.
The sales in Asia-Pacific, which includes China and Korea, grew 9 percent to $284 million, and the sales in Japan grew 15 percent to $185 million. The sales in Japan grew due to the brand exposure TIF got through a popular television show last year and a strong yen helped boost spending by Japanese tourists in other regions. The Chinese consumers spent more locally than as tourists.
Meanwhile, the global same-store sales were unchanged for the three months ended January 31st compared to the prior year, while the analyst has predicted a decline of 1.1%. But, in the U.S., comparable store sales fell 2% for the fourth quarter and 6% for the year. There was softness in the U.S. throughout the year due to the macro market and political uncertainties. In the US, TIF had struck a deal with activist investor Jana Partners later in February to add three directors to its board as the company tries to entice younger shoppers and revive struggling sales.
The sales of jewelry priced under $500 were higher in the quarter and the company is expected continue to increase its offerings in the category. The company also had reported higher sales in fashion jewelry, helped by higher sales of gold jewelry. However, TIF’s Americas sales fell 3 percent to $587 million in the quarter ended January 31st. TIF has partly blamed weak sales in the holiday period on traffic disruptions at its flagship store on Fifth Avenue in New York due to its proximity to Trump Tower, leading to a 7 percent drop in sales at the store in the quarter.
TIF will pay the quarterly dividend of $0.45 per share is scheduled to be paid on April 10th, 2017.
In fiscal 2017, TIF expects the earnings per share to increase by the mid-single-digit percentage over 2016’s adjusted earnings per share of $3.75. The net sales is expected to increase by the low-single digit percentage in fiscal 2017.
TIF stock has risen 31.72% in the last one year (source: Google Finance).