Tiffany & Co (TIF) 2Q Net Income Up 19%

August 27, 2010, 11:38 AM

Tiffany & Co. (NYSE: TIF) on Friday announced its second-quarter net income was up 19 percent on higher revenue as customers purchased more expensive jewelry around the world.

Tiffany’s reported net income of $67.7 million, or 53 cents per share, for the second quarter, up 19 percent from $56.8 million, or 46 cents per share, a year prior. Revenue missed analyst expectations by only gaining 9.2 percent to $668.8 million, analysts surveyed by Thomas Reuters had forecast $690.2 million.

The company said it had surpassed its own forecast. Tiffanys also boosted its full year earnings outlook by 10 cents per share.

Tiffany’s said China and Hong Kong were the strongest markets. In Asia same store sales gained 7 percent before the effect of currency translation, and in Europe they increased 21 percent.  Sales at Tiffany’s flagship store on Fifth Avenue were increased 8 percent which was gained mainly from tourism. In the New York area, same store sales had increased 12 percent.

Tiffany & Co plans to open 14 new stores this year.

Shares of Tiffany’s dropped $1.85 or 4.4 percent to $40.19 in the morning.

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