TIFFANY FORECAST IS ROSIER
NEW YORK — Tiffany & Co.’s rosy projections for the third quarter apparently weren’t optimistic enough.
Michael Kowalski, president and chief executive, told the Robertson Stephens Consumer Conference at The Pierre Hotel Wednesday that it now expects 40 percent growth in earnings per share in the quarter ending Oct. 31 as well as 15 percent growth in sales. If achieved, that increase would put Tiffany’s sales for the quarter at more than $370 million, compared to the $322.7 million registered in last year’s third quarter, and lift earnings to more than $31 million.
Kowalski said that earnings per share, which have been adjusted to reflect the company’s 2-for-1 stock split last July, should hit 21 cents per diluted share as compared to 14 cents in last year’s quarter. The consensus estimate for Tiffany had been 19 cents.
“Tiffany’s performance largely reflects strong comparable-store sales growth in August and September in the U.S. and Japan, our two largest markets,” Kowalski said, adding that the firm was “maintaining our expectation for a strong upcoming holiday season.”
Tiffany’s shares closed up 38 cents Wednesday to finish the day at $35.88, about midway between their 52-week high of $45.38 and the corresponding low of $25.50.
Tiffany’s third-quarter results are expected to be reported on Nov. 15. In the second quarter ended July 31, net income grew 70.4 percent to $39.2 million, while sales were up 21.1 percent to $372 million.