Mitchell Clark: Straggling earnings reports are revealing more weather-related issues for specific industries (home improvement, for example), but several retailers have been posting really good numbers.
Tiffany & Co. (NYSE:TIF) soared on news of its fiscal first quarter producing global sales growth of a solid 13% to $1.0 billion.
Bottom-line earnings grew a whopping 50% to $126 million, or $0.97 per diluted share—41% excluding one-time expenses—over the same quarter of the previous fiscal year.
Some of the surprising sales growth came from Europe, with a nine-percent comparable gain to $101 million, and from Japan, which saw sales improve 20% to $174 million.
On a constant currency basis, the Americas region produced increasing sales of nine percent and comparable store growth of eight percent to $439 million.
As a result, company management increased its earnings range for the fiscal year ending January 31, 2015 to between $4.15 and $4.25 per diluted share, up from the previous earnings range of $4.05 to $4.15 per diluted share.
The Street bid the stock nine percent, or about $8.00 a share, on the financial report.
And another higher-end retailer reported very good earnings, as well, seeing its stock move nicely higher on the news.
Williams-Sonoma Inc. (NYSE:WSM) raised its full-year fiscal 2014 earnings forecast after producing first-quarter net revenue growth of 9.7% to $974 million.
The company is having very good success growing its direct-to-consumer business, which improved 17% in the first quarter, representing half of all revenues.
The company’s operating margin grew during the latest quarter, and diluted earnings per share grew 20% to $0.48, or $46.2 million in total.
These are solid numbers from two important brands. Tiffany & Co. is an expensive stock, but it’s always expensive and has been doing very well on the stock market since 2005.