Tiffany & Co beats by $0.20, beats on revs; guides Q2 EPS below consensus; raises FY15 EPS, reeaffirms FY15 net sales guidance
Reports Q1 (Apr) earnings of $0.97 per share, $0.20 better than the Capital IQ Consensus of $0.77; revenues rose 13.0% year/year to $1.01 bln vs the $0.95 bln consensus.
Co issues guidance for FY15, raises EPS to $4.15-4.25 from $4.05-4.15 vs. $4.17 Capital IQ Consensus. Co reaffirms worldwide net sales increasing by a high-single-digit percentage, with all regions expected to achieve growth in their total sales in U.S. dollars and in comparable store sales on a constant-exchange-rate basis. 2) Adding 13 Company-operated stores and closing four existing stores: opening four in the Americas, five in Asia-Pacific, two in Japan, and one each in Europe and Russia, while closing one each in the Americas, Asia-Pacific, Japan and the U.A.E. 3) Earnings from operations as a percentage of net sales increasing due to a higher gross margin and SG&A expense growth less than sales growth.
- On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 15% and comparable store sales rose 11% due to growth in most regions.
- Comps (constant FX): Americas +8%, Asia-Pacific +10%; Japan +29%; Europe +3%
- Gross margin was 58.2% vs. ~57% estimates and 56.2% last year. The increase reflects favorable product costs and price increases across all product categories and regions, as well as sales leverage on fixed costs resulting from the strong increase in worldwide net sales.
Co issues guidance for FY15, raises EPS to $4.15-4.25 from $4.05-4.15 vs. $4.17 Capital IQ Consensus. Co reaffirms worldwide net sales increasing by a high-single-digit percentage, with all regions expected to achieve growth in their total sales in U.S. dollars and in comparable store sales on a constant-exchange-rate basis. 2) Adding 13 Company-operated stores and closing four existing stores: opening four in the Americas, five in Asia-Pacific, two in Japan, and one each in Europe and Russia, while closing one each in the Americas, Asia-Pacific, Japan and the U.A.E. 3) Earnings from operations as a percentage of net sales increasing due to a higher gross margin and SG&A expense growth less than sales growth.