Tiffany & Co on Tuesday reported a higher quarterly profit, helped by stronger-than-expected sales in China that trumped fears of a slowdown there, and the US jeweler raised its full-year forecast.
Shares of Tiffany rose 2 per cent to $83.30 in trading before the market opened.
Global sales rose 4.4 per cent to $925.9 million in the second quarter ended July 31, below the $941.4 million analysts were expecting, according to Thomson Reuters I/B/E/S. The depreciation of the yen hurt results in Japan, where Tiffany gets about 20 per cent of its sales.
Sales at stores open at least a year rose 5 per cent globally, in line with analysts' estimates. Brisk business in China fueled a 13 per cent gain in Asia outside Japan, well above estimates.
Same-store sales rose 7 per cent in Europe, excluding currency fluctuations, and were unchanged in the Americas.
Tiffany reported net income of $106.8 million, or 83 cents per share, compared with $91.8 million, or 72 cents per share, a year earlier.
The profit was 9 cents more than analysts expected, helped by lower pressure from diamond and gold prices. Also, Tiffany said its price increases did not deter shoppers.
The company now expects a profit of $3.50 to $3.60 per share this fiscal year, 7 cents more than its previous forecast range.
Tiffany still expects net sales worldwide to increase by a mid-single-digit percentage rate, including the effect of the strong US dollar.