Tiffany & Co saw third quarter net earnings surge 50 per cent to $95m (£58.7m), beating the Wall Street prediction of $74.9m (£46.3m) and leading to the company raising its annual earnings forecast for the second time in three months.
The world's second-largest jeweller was boosted by growing sales in Asia, where they soared 27 per cent to $238m. Worldwide sales rose seven per cent to $911m, exceeding the $889m analysts' prediction. Year-to-date, net sales rose seven per cent to $2.7bn in the nine months to 31 October.
Tiffany's management has upped its full-year forecast again, predicting net earnings per share in a range of $3.65 (£2.25) to $3.75 (£2.32) for the fiscal year ending 31 January 2014. In August, it issued an increase in its guidance to a range of $3.50 to $3.60. Shares climbed up over seven per cent on the news:
Net sales in the Americas rose four per cent to $417m in the quarter. In Europe, total sales increased seven per cent to $104m. In Japan, the business continued to do well, although a weak yen resulted in a 13 per cent decline in total sales to $128m. On a constant exchange rate basis, however, total sales rose nine per cent in the quarter.
Michael J. Kowalski, chairman and chief executive officer, said that the global growth "demonstrated the growing power of the Tiffany & Co. brand and the benefits of our expanding global presence. He continued: "Operating earnings rose faster than sales, reflecting favourable product cost trends and ongoing well-controlled expenses."
Kowalski added that the brand is experiencing a great response to its designs, highlighted by the Atlas and yellow diamond collections, along with continued growth in fine and statement jewellery.
In September, Tiffany's saw the appointment of new design director Francesca Amfitheatrof, which was followed by the promotion of Frederic Cumenal to president, a new seat on the board.