Tiffany's profit beats on higher sales in Japan

Industries Reuters

(Reuters)

Tiffany & Co reported bigger-than-expected quarterly profit and sales on Thursday, helped in part by higher demand for its fashion and designer jewelry in Japan and lower input costs.

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Sales at established stores open for more than a year fell 2 percent, steeper than the 1 percent fall expected by analysts polled by research firm Consensus Metrix.

The company, which gets about 15 percent of its revenue from Japan, saw comparable sales rise 3 percent in the region in the quarter.

Comparable sales in the Americas - its biggest market, fell 1 percent due to lower tourist spending and weak demand across categories other than fashion and designer jewelry.

Net sales rose 3 percent to $959.7 million in the second quarter ended July 31, beating the analysts' average estimate of $930.3 million, according to Thomson Reuters I/B/E/S.

Net income rose to $115 million, or 92 cents per share, in the reported quarter, from $105.7 million, or 84 cents per share, a year earlier.

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Analysts had expected the company to earn 84 cents per share.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)

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