Tiffany & Co. (NYSE:TIF) Surpasses Analysts’ Estimates for 2Q- Increases the Outlook Of 2014

Tiffany & Co. (NYSE:TIF) recently posted its remarkable second quarter’s results for the fiscal year 2014. Market analysts were expecting earnings of 80-84 cents for the second quarter; however, the company surpassed the estimates by delivering 96 cents per share.

The company said that its financial reports were boosted due to an increase in the sales figures; not to mention that the company also saw increased margins for the second quarter.

The stocks of Tiffany & Co. (NYSE:TIF) jumped up by 3 percent during the early trading session on August 27, 2014.

The company posted total sales worth $992.9 million for the second quarter; an increase of 7 percent can be seen if the figures are compared with the numbers of the same quarter a year back. This increase resulted due to better performance of the company in the regions of Asia and America.

The total revenue of the company – $992.9 million- exceeded the estimates of the market: $990 million. The company saw an increase of 7 percent in the net sales sector in the constant currency whereas the sales comp increased by 3 percent.

Coming to the segments, the sales in the region of America rose by 9 percent and reached to $484 million whereas the comps in the same region jumped up by 8 percent. Moreover, sales in the region of Asia increased by 14 percent and reached to $237 million while the comps grew by 7 percent. Similarly, the sales figures in the region of Europe increased by 8 percent and touched the figures of $120 million, with comps decreasing by 2 percent.

Coming to the region of Japan, the sales figures dropped by 13 percent and came down to $119 million. Sales in other regions increased by 28 percent and reached to $33 million while the comps jumped up by 2 percent.

The gross profit of Tiffany & Co. (NYSE:TIF) increased by 11.8 percent and reached to $595.2 million. The gross margin of the company soared by 240 bps and reached to 59.9 percent due to decreased costs and increased prices.

Talking about the net income of the company for operations, the figures increased by 17.9 percent and reached to $208.5 million whereas the margin for operations increased by 190 bps and reached to 21 percent.

Tiffany & Co. (NYSE:TIF) has increased its guidance outlook for the year 2014. The company now expects an EPS falling in the range of $4.20 to $4.30; previously, the company had expected the earnings to reach to the range of $4.15 to $4.25.

The company has a #3 Zacks rank on its stocks with a consensus rating of ‘Hold’.

Coming to the stock prices of Tiffany & Co. (NYSE:TIF), the company, on the last trading day, August 17, 2014, started its stocks at a price of $104.61 and closed at a price of $101.75. The company has a market capitalization of $13 billion with a price to earnings ratio of 58.84. As far as the dividend of the company’s stock are concerned, the figures are recorded to be at 1.49 percent.