Tiffany shares opened sharply higher in the US Wednesday, hitting a fresh record high as the US luxury jeweller reported upbeat first-quarter earnings.
Its new strategy to sell a broader range of items at lower prices, while still focussing on its high-end jewellery appears to be working with US, European and Asia-Pacific sales all performing strongly.
Tiffany shares opened 14.62% higher at $117.19. That’s the highest level for stock since it began trading on the stock exchange in 1987.
Tiffany’s Q1 results
Tiffany’s financial results, published earlier Wednesday, show that total sales growth hit 15% in Q1 2018 from a year earlier. Comparable global same-store sales, rose 10%, over the same period.
Total net sales in the US, the jewellers’ biggest market, grew 9% to $425 million. Meanwhile, underscoring a growing appetite for all the goods on offer at Tiffany & Co, total net sales across Asia surged 28% in Q1 from a year earlier. And in Europe, Tiffany’s total net sales growth was 13%.
“We are very pleased with this start to the fiscal year, and we are particularly encouraged by the breadth of sales growth across most regions and all product categories,” said Tiffany & Co’s CEO, Alessandro Bogliolo.
Bogliolo added the company is sticking to its plans to improve sales and deliver an omnichannel experience for its customers, everywhere.
Outlook and share repurchase plan
Tiffany’s outlook shows the US business is confident its turnaround plan will continue to deliver for its customers and shareholders.
As such it is anticipating net sales growth in the high single digits. Meanwhile, earnings per share is expected to rise to a range of $4.50-$4.70 by the year ending January 2019. That’s up from its previous forecast of $4.5-$4.45 EPS.
Tiffany’s also announced a new $1 billion share buyback program. The jeweller plans to repurchase common stock through until January 31 2022.