NEW YORK (TheStreet) - Tiffany (TIF) 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:
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.
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.