Tiffany’s (NYSE: TIF) said its first-quarter results beat analysts' estimates on Wednesday, with strong sales of its high-end jewelry in the Americas and Asia-Pacific regions helping the company raise its annual sales and profit forecasts.
Tiffany's shares rocketed $13.89, or 13.6%, to $116.13 mid-morning Wednesday. The stock has gained 6.3% so far this year, outperforming the broader S&P 500 consumer discretionary index.
The New York-based upscale jeweler is benefiting from its turnaround plan that was put in place to stem price-conscious millennial shoppers from drifting to stores and websites of newer players such as Denmark's Pandora A/S and online jeweler Blue Nile.
The plan included selling cheaper-priced items to millennials as well as everyday home items such as paper clips, pocket diaries, mirrors and wine openers to appeal to a wider customer base.
The company's sales in the Americas, its biggest market, rose 9% and Asia-Pacific 28% in the three months ended April 30.
Overall same-store rose 7% on a constant currency basis. Analysts on average had expected an increase of 2.7%.
The company also said its gross margins for the quarter rose 63% compared with a 62.1% rise a year ago.
Tiffany now expects earnings per share of $4.50 to $4.70 for the year ending January 2019, compared with the prior forecast of $4.25 to $4.45 per share.
First-quarter net sales rose 14.8% to $1.03 billion, topping analysts' estimates of $959.4 million.
Excluding one-time items, the company earned $1.14 per share, while Wall Street analysts had expected 83 cents per share.
Tiffany also announced a new $1-billion stock buyback program.
