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Tiffany earnings, revenue top estimates

Tiffany earnings, revenue top estimates

Tiffany on Wednesday delivered quarterly earnings and revenue that topped analysts’ expectations. The company’s net income fell to $104.9 million, or 81 cents per share, in the first quarter ended April 30 from $125.6 million, or 97 cents per share, a year earlier. Revenue fell to $962.4 million from $1.07 billion a year ago, as a strong dollar discouraged tourists from spending in its U.S. stores and reduced the value of overseas sales.1015Tiffany09_t653

Analysts expected the retailer to report earnings of 70 cents per share on $919 million in revenue, according to a consensus estimate from Thomson Reuters. While revenue fell year over year, Ike Boruchow, senior research analyst at Sterne Agee, noted that Tiffany beat expectations in every geographic region. He singled out its business in Europe as a bright spot.

“Luxurywise, I think Europe is on sale right now if you look at what the exchange rates have done to the price proposition there. I think you’re seeing a lot of tourist flows there,” he said on CNBC’s “Squawk Box. Total same-store sales fell 7 percent. The retailer’s shares moved sharply higher in premarket trading following the announcement.

Tiffany shares have dropped more than 20 percent this year. The luxury retailer has taken part of that hit since its quarterly results in March, when it reported a decline in revenue on flat holiday sales.  U.S. comps returned to positive territory in the most recent quarter, giving investors a reason to be more confident, Boruchow said.

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