Tiffany Q2 Sales Up 9 percent, Increases Earnings Outlook

Net earnings from continuing operations rose 19 percent to $67.7 million. The company credited the growth in net earnings to a higher operating margin. Net earnings from continuing operations adjusted to exclude nonrecurring items rose 45 percent.

The company increased its full year earnings growth outlook.

In the U.S., Canada and Latin/South America, sales increased 8 percent to $350.4 million in the second quarter and rose 14 percent to $665.7 million in the first half. Comparable store sales increased 5 percent in the quarter, while sales in the New York flagship store rose 8 percent. 

In Asia-Pacific, sales increased 21 percent to $111.5 million in the second quarter and increased 35 percent to $233.8 million in the first half. The largest growth in the region was in China, Hong Kong, Macau and Korea. 

In Japan, sales of $118 million in the second quarter and $233.1 million in the first half were 4 percent and 1 percent higher than the prior year. On a constant-exchange-rate basis, sales declined 2 percent and 5 percent in the respective periods and comparable store sales declined 7 percent and 8 percent. 

In Europe, sales increased 14 percent to $76.9 million in the second quarter and 19 percent to $145.5 million in the first half.

Other sales declined 19 percent to $11.9 million in the second quarter primarily due to lower wholesale sales of rough diamonds. Other sales increased 24 percent to $24.2 million in the first half, due to higher wholesale sales of rough diamonds and increased wholesale sales of Tiffany & Co. merchandise.