Investors cheered the news, sending the stock soaring nearly 5% prior to the market open.
The New York-based company reported Q2 net income of $0.84 per share, easily beating Wall Street’s view of $0.72. Revenue fell 5.9% from last year, however, which was in-line with estimates.
Excluding currency effects, worldwide total sales fell 6%, while comparable sales plunged 9%.
Looking ahead, TIF reaffirmed its full-year 2017 guidance for EPS of ~$3.60-3.68, which straddles analyst estimates for $3.62.
From the press release:
Frederic Cumenal, chief executive officer, said, “The global environment continues to reflect well known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists, especially from China. We are managing expenses efficiently, but also maintaining our marketing spending as a percentage of sales and continuing to invest in key strategic initiatives and opportunities to further strengthen Tiffany’s competitive position among global luxury brands. By delivering extraordinary products and experiences to our customers around the world, we remain focused on growing sales, operating margins and earnings, and creating greater value for stockholders.”
Tiffany shares rose $3.11 (+4.52%) to $71.98 in premarket trading Thursday. Prior to today’s report, TIF had fallen nearly 10% year-to-date.