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Tiffany (TIF) Q3 Earnings & Sales Top Estimates, View Intact
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Tiffany & Co. posted sixth straight quarter of positive earnings surprise, when it reported third-quarter fiscal 2017 results. This designer and retailer of fine jewelry posted quarterly earnings of 80 cents a share that beat the Zacks Consensus Estimate of 76 cents and increased approximately 5% from the year-ago period on account of higher sales and improved margins.
Net sales came in at $976.2 million, up 3% from $949.3 million recorded in the prior-year quarter and came ahead of the Zacks Consensus Estimate of $960 million. The company registered sturdy sales in the Fashion Jewelry and the High, Fine & Solitaire Jewelry categories. However, comparable-store sales (comps) declined 1%. In constant currencies, worldwide net sales jumped 3%.
Tiffany’s omni-channel platform, store expansion programs, tapping of new markets and venturing into new revenue generating avenues bode well for the stock. So far in the year, the company’s shares have increased 21.5% against the industry’s decline of 4.1%.
Let’s Delve Deep
By geographic segments, sales in the Americas climbed 1% to $421 million, while comps also increased by an equivalent rate. Sales in the Asia-Pacific region surged 15% to $283 million, while comps grew 2%. Sales in Japan declined 8% to $139 million, while comps also declined by the same rate. Sales in Europe came in at $110 million, up 5% but comps decreased by 3%. Other sales came in at $23 million, down 26%, while comps increased 7%.
Gross margin expanded 30 basis points to 61.3% during the quarter on account of favorable product input costs, partially offset by rise in wholesale sales of diamonds. Operating margin increased 10 basis points to 16.4%.
In the first nine months of fiscal year, Tiffany has opened seven stores and shuttered five locations. As of Oct 31, 2017, the company operated 315 stores (125 in the Americas, 86 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the U.A.E.). Management now anticipates gross retail square footage growth of 2% via nine openings, seven relocations and seven closings.
Other Financial Details
Tiffany, which carries a Zacks Rank #2 (Buy), ended the quarter with cash and cash equivalents and short-term investments of $1,009.4 million, and total short-term and long-term debt of $1,072.4 million, reflecting 34% of shareholders equity.
During the quarter, the company repurchased approximately 300,000 shares at an average cost of about $92 per share. As of Oct 31, 2017, the company had $250 million remaining under its $500 million buyback program that run through Jan 31, 2019.
Management anticipates capital expenditures in the band of $235-$250 million and expects to generate free cash flow of approximately $450 million during fiscal 2017.
Guidance
Management continues to anticipate fiscal 2017 earnings per share to increase by a high-single-digit percentage from fiscal 2016 earnings of $3.55. However, it expects earnings to jump mid-single-digit-percentage over adjusted earnings of $3.75 per share reported in fiscal 2016. Tiffany now envisions fiscal year net sales to increase by a low-single-digit percentage on a reported and constant-exchange-rate basis.
Want to Know About the Gems in the Retail Space?
Urban Outfitters, Inc. (URBN - Free Report) delivered an average positive earnings surprise of 5.7% in the trailing four quarters. It has a long-term earnings growth rate of 11.5% and carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zumiez Inc. (ZUMZ - Free Report) delivered an average positive earnings surprise of 27.1% in the trailing four quarters. The company has a long-term earnings growth rate of 18% and carries a Zacks Rank #2.
The Home Depot, Inc. (HD - Free Report) delivered an average positive earnings surprise of 3.9% in the trailing four quarters. It has a long-term earnings growth rate of 13.4% and carries a Zacks Rank #2.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Tiffany (TIF) Q3 Earnings & Sales Top Estimates, View Intact
Tiffany & Co. posted sixth straight quarter of positive earnings surprise, when it reported third-quarter fiscal 2017 results. This designer and retailer of fine jewelry posted quarterly earnings of 80 cents a share that beat the Zacks Consensus Estimate of 76 cents and increased approximately 5% from the year-ago period on account of higher sales and improved margins.
Net sales came in at $976.2 million, up 3% from $949.3 million recorded in the prior-year quarter and came ahead of the Zacks Consensus Estimate of $960 million. The company registered sturdy sales in the Fashion Jewelry and the High, Fine & Solitaire Jewelry categories. However, comparable-store sales (comps) declined 1%. In constant currencies, worldwide net sales jumped 3%.
Tiffany’s omni-channel platform, store expansion programs, tapping of new markets and venturing into new revenue generating avenues bode well for the stock. So far in the year, the company’s shares have increased 21.5% against the industry’s decline of 4.1%.
Let’s Delve Deep
By geographic segments, sales in the Americas climbed 1% to $421 million, while comps also increased by an equivalent rate. Sales in the Asia-Pacific region surged 15% to $283 million, while comps grew 2%. Sales in Japan declined 8% to $139 million, while comps also declined by the same rate. Sales in Europe came in at $110 million, up 5% but comps decreased by 3%. Other sales came in at $23 million, down 26%, while comps increased 7%.
Gross margin expanded 30 basis points to 61.3% during the quarter on account of favorable product input costs, partially offset by rise in wholesale sales of diamonds. Operating margin increased 10 basis points to 16.4%.
Tiffany & Co. Price, Consensus and EPS Surprise
Tiffany & Co. Price, Consensus and EPS Surprise | Tiffany & Co. Quote
Store Update
In the first nine months of fiscal year, Tiffany has opened seven stores and shuttered five locations. As of Oct 31, 2017, the company operated 315 stores (125 in the Americas, 86 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the U.A.E.). Management now anticipates gross retail square footage growth of 2% via nine openings, seven relocations and seven closings.
Other Financial Details
Tiffany, which carries a Zacks Rank #2 (Buy), ended the quarter with cash and cash equivalents and short-term investments of $1,009.4 million, and total short-term and long-term debt of $1,072.4 million, reflecting 34% of shareholders equity.
During the quarter, the company repurchased approximately 300,000 shares at an average cost of about $92 per share. As of Oct 31, 2017, the company had $250 million remaining under its $500 million buyback program that run through Jan 31, 2019.
Management anticipates capital expenditures in the band of $235-$250 million and expects to generate free cash flow of approximately $450 million during fiscal 2017.
Guidance
Management continues to anticipate fiscal 2017 earnings per share to increase by a high-single-digit percentage from fiscal 2016 earnings of $3.55. However, it expects earnings to jump mid-single-digit-percentage over adjusted earnings of $3.75 per share reported in fiscal 2016. Tiffany now envisions fiscal year net sales to increase by a low-single-digit percentage on a reported and constant-exchange-rate basis.
Want to Know About the Gems in the Retail Space?
Urban Outfitters, Inc. (URBN - Free Report) delivered an average positive earnings surprise of 5.7% in the trailing four quarters. It has a long-term earnings growth rate of 11.5% and carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zumiez Inc. (ZUMZ - Free Report) delivered an average positive earnings surprise of 27.1% in the trailing four quarters. The company has a long-term earnings growth rate of 18% and carries a Zacks Rank #2.
The Home Depot, Inc. (HD - Free Report) delivered an average positive earnings surprise of 3.9% in the trailing four quarters. It has a long-term earnings growth rate of 13.4% and carries a Zacks Rank #2.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>