Tiffany Co. Earnings Cheat Sheet: Beats Wall Street Expectations

S&P 500 (NYSE:SPY) component Tiffany & Co. (NYSE:TIF) reported net income above Wall Street’s expectations for the second quarter. Tiffany & Co. is a jeweler and specialty retailer that sells timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

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Tiffany Earnings Cheat Sheet for the Second Quarter

Results: Net income for Tiffany & Co. rose to $90 million (69 cents per share) vs. $67.7 million (53 cents per share) in the same quarter a year earlier. This marks a rise of 33.1% from the year earlier quarter.

Revenue: Rose 30.5% to $872.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TIF reported adjusted net income of 86 cents per share. By that measure, the company beat the mean estimate of 69 cents per share. It beat the average revenue estimate of $785.4 million.

Quoting Management: Michael J. Kowalski, chairman and chief executive officer, said, “We are extremely pleased by these results which confirm the growing global appeal of Tiffany’s product offerings.In addition, we have been able to absorb precious metal and gemstone cost increases while improving our gross and operating margins.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.1 percentage points to 59% from the year earlier quarter. Over that span, margins have grown on average 2.1 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 25.8% and in the fourth quarter of the last fiscal year, the figure rose 29.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 5 cents in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 20.1% to $761 million in the first quarter. The figure rose 12.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 14% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Zale Corporation (NYSE:ZLC), Blue Nile, Inc. (NASDAQ:NILE), DGSE Companies, Inc. (AMEX:DGSE), Coach, Inc. (NYSE:COH), Signet Jewelers (NYSE:SIG), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Nordstrom (NYSE:JWN) and Macy’s (NYSE:M).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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