NEW YORK (TheStreet) - Tiffany
(TIF - Get Report) shares were rising 1% to $101.81 on Wednesday after the luxury-jewelry retailer surprised Wall Street by beating earnings expectations by 9 cents a share, fueled in large part by sales growth in the U.S. and gross margin expansion of approximately 240 basis points, to 59.9%.
For the second quarter, Tiffany reported net income of $124 million, or 96 cents a share, compared with $107 million, or 83 cents a share in the year-earlier period. Consensus estimates were calling for earnings of 85 cents a share for the July 31-ending period.
For more on Tiffany's latest quarterly results, watch the video below:
WATCH: More market update videos on TheStreet TV
Net sales across all its regions rose 7% to $993 million, higher than estimates of $987.8 million. Worldwide comparable sales rose 3% fueled by an 8% comp in the U.S. (compared to 5.8% expected by analysts) and 7% in Asia-Pacific. Still comps in Japan slumped 13% for the quarter while European comparable sales fell 8% in the period.
Read More: Macy's Missed on Earnings and Here Are All the Details
Tiffany upped its full-year EPS forecast range by 5 cents to a range of $4.20 to $4.30 a share, up from its previous guidance of $4.15-$4.25.
Here's what analysts are saying about Tiffany's earnings:
Francesca Di Pasquantonio, Deutsche Bank (Hold; $100 PT)
The key highlight of the results is the strength of the US comps which indicates that the backdrop remains favourable and that TIF self-driven initiatives on product, CRM [customer relationship management], stores etc. are propelling a good market share progression.
Read More: Alibaba Posts Strong Second Quarter Mobile Results Ahead of IPO
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts