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Tiffany holiday season same-store sales rise 7 pct
NEW YORK (Reuters) - Tiffany & Co. (TIF.N) said on Wednesday that sales for the holiday shopping season rose a better-than-expected 7 percent at stores open at least a year, and the high-end jeweler nudged up its full-year earnings outlook.
Strength in the United States and most international markets helped offset weakness in Japan, the company said.
Total sales for the period from November 1 through December 31 rose 15 percent to $818.1 million, the New York-based company said.
Tiffany estimated net earnings for the fiscal year ending on January 31 at $1.82 to $1.85 per share, up from its November forecast of $1.79 to $1.84. The revised forecast is in line with analysts' expectation of $1.83 a share, according to Reuters Estimates.
The company said it expected an increase of 14 percent to 15 percent in fourth-quarter sales and earnings of $1.03 to $1.06 per share, helped by increased sales of diamonds and silver jewelry.
In the United States, holiday retail sales rose 12 percent to $432.4 million. Sales at U.S. stores open at least a year, an important metric known as same-store sales, were up 8 percent, with increases of 15 percent at the flagship New York store and 7 percent at branches.
Tiffany said the number of transactions and the average amount spent per transaction both rose.
The company said it planned to open five to seven stores in the United States and 10 stores internationally in the fiscal year beginning in February, Chief Financial Officer James Fernandez said in a conference call.
Tiffany forecast a double-digit net sales increase for the coming fiscal year, while analysts were expecting an 8.5 percent rise, according to Reuters Estimates.
Tiffany also said it expected a 13 percent to 15 percent increase in earnings per share for the coming fiscal year, compared with analysts' forecasts of $2.07 per share, up 13 percent from their average outlook for this year.
Last week, lower-priced jeweler Zale Corp. (ZLC.N) reported a 2.3 percent increase in its same-store sales for the holiday shopping period, but cut its profit forecast for the current quarter.
Tiffany shares were down 50 cents, or 1.2 percent, at $39.12 in morning New York Stock Exchange trade.
