Tiffany & Co. (NYSE:TIF) gained ground Tuesday on the release of first quarter earnings.
The New York-based jewelry dealer announced worldwide net sales as reported were modestly below the prior year, and were equal to the prior year on a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars
Worldwide net sales declined 3% to $1.0 billion and comparable sales declined 5%; on a constant-exchange-rate basis, net sales were equal to the prior year and comparable sales declined 2%. These results reflected mixed performance across regions and product categories.
Net earnings of $125 million were 12% lower than the prior year’s $142 million, and net earnings per diluted share were $1.03 versus $1.14 in the prior year.
In the Americas, for example, total net sales declined 4% to $406 million, and comparable sales declined 5%; on a constant-exchange-rate basis, both total net sales and comparable sales declined 4%.
Management attributed these sales declines largely to lower spending by foreign tourists, which represented a continuing negative trend from the second half of last year.
Gross margin (gross profit as a percentage of net sales) of 61.7% was below the prior year’s 63.0%.
Investors can expect a quarterly dividend of $0.58 per share of Common Stock, representing a 5% increase in the quarterly rate. This declaration increases the quarterly dividend from $0.55 per share (or $2.20 annually) to the new rate of $0.58 per share (or $2.32 annually). The dividend will be paid on July 10, to shareholders of record on June 20.
TIF shares climbed $3.03, or 3.4%, to $93.20
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