[video] Tiffany Indicates Higher-End Strength
NEW YORK (TheStreet) -- Shares of Tiffany & Co.
Questions regarding the strength of the consumer this holiday season have surfaced as a number of prominent retail names have reported weaker than anticipated guidance for the fourth quarter. Some on the street including myself feel the higher end space will outperform the lower end this season as a result of a couple of key themes. Here's a quick look at the recent strong results from Tiffany in contrast to the results from one of the biggest lower-end names and my rationale for why the higher end should outperform the lower side of the retail market this holiday season.
The renowned jeweler reported its global revenues rose 7% to $911.5 million in the third quarter ended Oct. 31. These results came in well above analysts' consensus estimates of $890 million. Moreover, on a comparable-sales basis, Tiffany generated a 7% increase in revenues driven by standout Asia-Pacific sales. On the bottom line the company reported its net income rose an astonishing 49%. Tiffany's net income of $94.6 million, or 73 cents per share, was well above the $63.2 million, or 49 cents per share, reported for last year's third quarter.
Tiffany would go on to ensure its shareholders strong results for the remainder of the year. The company raised its full-year profit forecast by 15 cents per share to a range of $3.65 to $3.75. Tiffany believes it will see its net sales worldwide increase by a mid-single-digit percentage rate for the fiscal year.