After missing estimates in four of the prior five quarters, Tiffany (TIF) blew away Wall Street’s expectations on Tuesday with a 2.6% rise in first-quarter profits amid solid same-store sales growth.
Shares of the New York-based jeweler surged 6% in premarket trading on the big earnings beat and management’s decision to reaffirm full-year guidance.
Tiffany said it earned $83.6 million, or 65 cents a share, last quarter, compared with a profit of $81.5 million, or 64 cents a share, a year earlier.
Excluding one-time items, it earned 70 cents a share, compared with consensus calls from analysts for just 52 cents.
Net sales jumped 9.3% to $895.4 million, easily topping the Street’s view of $855.1 million. On a constant currency basis, net sales climbed 13%. Same-store sales rose by a healthy 8%.
“We are pleased with this start to the year. Worldwide, first quarter sales exceeded our expectations, enabling us to improve our sales leverage on fixed expenses and achieve earnings growth,” CEO Michael Kowalski said in a statement.
Looking ahead, Tiffany said it is standing by its previous call for full-year EPS of $3.43 to $3.53 and global net sales to increase by a mid-single-digit percentage in U.S. dollars. Analysts are projecting full-year EPS of $3.48.
Tiffany generated sales growth from around the world in the first quarter, including a 6% gain in the Americas to $408 million.
The jeweler said sales in the Asia-Pacific region soared 15% to $223 million amid growth in Greater China, while sales rose by a more modest 2% in Japan to $145 million.
Despite Europe’s struggling economy, Tiffany said sales on the increased 6% to $93 million.
Wall Street cheered Tiffany’s results, bidding the company’s stock up 6.29% to $81 ahead of Tuesday’s opening bell. The rally puts Tiffany on pace to build on its 33% rally so far this year.