Tiffany & Co (TIF) Expects A Holiday Jewel

Tiffany & Company (NYSE:TIF) has raised its full-year profit outlook based on the expectation that it will continue to enjoy sales gains throughout the holiday shopping season. Tiffany’s sales, rose 17% globally to $821.8 million in the third quarter ended on October 31, while sales at stores open at least one year rose 16%.

Tiffany reported net income of $89.7 million, or 70 cents per share, for the quarter, up from $55.1 million, or 43 cents per share, a year earlier and above the 61 cents a share that analysts were expecting, according to Thomson Reuters I/B/E/S. Tiffany raised its full-year profit outlook range by 5 cents, to a range of $3.70 and $3.80 per share.

Michael J. Kowalski, Chairman and CEO, said, “Increased sales in all regions contributed to the continuation of strong worldwide sales growth in the third quarter. We were also pleased to achieve an improved operating margin by leveraging the sales growth against fixed costs.”

Kowalski added, “Tiffany is extremely well-positioned to serve growing numbers of discerning customers around the world with extraordinary product offerings and superior shopping experiences. We are, of course, mindful of continued short-term economic challenges and uncertainties in some markets. Worldwide sales-to-date at this relatively early stage of our November-December holiday season are tracking in-line with our current expectations despite recent sales weaknesses in Europe and in the eastern part of the U.S. We are slightly increasing our full year earnings forecast to $3.70 – $3.80 per diluted share (not including $0.20 per diluted share of nonrecurring expenses) to reflect a portion of the better-than-expected third quarter results.”

Tiffany reported cash and cash equivalents and short-term investments totaled $297.4 million at October 31, 2011, versus $529.5 million from same period last year. Total short-term and long-term debt totaled $708.8 million at October 31, 2011 versus $755.0 million a year ago, representing 31% of stockholders’ equity compared with 38% a year ago.

Shares of Tiffany & Co (NYSE:TIF) traded at 73.62 at the close of the market on Monday.

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An avid market watcher, Martin enjoys the tech arena the most with the Nasdaq being his main area of focus. A finance major, Martin is working to the goal of one day ringing the bell at the NYSE.
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