At Tiffany, earnings were 92 cents a share in the second quarter that ended last month. That topped analysts’ average 86-cent projection. Same-store sales exceeded estimates in the U.S. and Japan while missing in Europe and the Asia-Pacific region.
“It’s a decent quarter, it’s good enough to support the stock here,” said Brian Yarbrough, an analyst at Edward Jones & Co. “But across the board, the business remains difficult. At some point we really need to see some acceleration in comps or there’s going to be questions,” he said, referring to same-store sales.
Tiffany Shines Up Some Spots But Still Has Work to Do: Gadfly
The jeweler is betting Alessandro Bogliolo, who takes over as chief executive officer in early October, will further invigorate the brand.
The results follow an unexpected sales decline in the first quarter. Tiffany’s past results drew the attention of activist investor Jana Partners, which said the shares were undervalued. Another investor, CtW Investment Group, has been pushing for more diversity and younger directors on the jeweler’s aging board.
Tiffany maintained its forecast for the full year, calling for sales to grow by a low single-digit percentage. Excluding some items, profit is expected to climb by a mid-single-digit percentage from $3.75 a share in the last fiscal year.
Tiffany is focused on innovating designs in jewelry and luxury accessories and making marketing more impactful to bolster the in-store and online experience for customers, interim Chief Executive Officer Michael Kowalski said in a statement.
This article was provided by Bloomberg News.