Tiffany Earnings Cheat Sheet: Strong Margins Continue as Net Income Rises

S&P 500 (NYSE:SPY) component Tiffany & Co. (NYSE:TIF) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for the jewelry store rose to $81.1 million (63 cents/share) vs. $64.4 million (50 cents/share) in the same quarter a year earlier. A rise of 25.9% from the year earlier quarter.

Revenue: Rose 20.1% to $761 million YoY.

Actual vs. Wall St. Expectations: TIF beat the mean analyst estimate of 56 cents/share. Estimates ranged from 54 cents per share to 64 cents per share. It beat the average revenue estimate of $703.3 million.

Quoting Management: Michael J. Kowalski, chairman and chief executive officer, said, “We are pleased with the very strong start to the year. We achieved healthy sales growth in most regions, were able to improve gross margin despite higher product costs and achieved a significant increase in our operating margin.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.5 percentage point to 58.3% from the year earlier quarter. Over that span, margins have grown on average 2.3 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 29.1% and in the third quarter of the last fiscal year, the figure rose 27.1%.

Revenue has risen the past four quarters. Revenue increased 12.2% to $1.1 billion in fourth quarter of the last fiscal year. The figure rose 14% in third quarter of the last fiscal year from the year earlier and climbed 9.2% in second quarter of the last fiscal year from the year-ago quarter.

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

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).

Stock Performance: Shares of TIF are up over 8.5% today…

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(Sources: YahooFinance, Xignite Financials)