Tiffany's quarterly earnings trounce estimates, sending shares soaring

  • Tiffany reported much better-than-expected first-quarter comparable-store sales.
  • Results were boosted by strong demand for its high-end silver and gold fashion jewelry in America.
  • Tiffany also announced a new $1 billion stock buyback program.
A model shows off a diamond ring and bracelet as she stands outside the entrance of a Tiffany & Co. store.
Timothy A. Clary | AFP | Getty Images
A model shows off a diamond ring and bracelet as she stands outside the entrance of a Tiffany & Co. store.

Tiffany's first-quarter earnings handily beat analysts' estimates on Wednesday, boosted by stronger sales of its high-end jewelry, leading the company to raise its annual sales and profit forecasts.

Tiffany's shares rose 8.2 percent to $110.50 in pre-market trading.

The company benefited from higher demand in the Americas and Asia-Pacific regions, and sales from the two markets rose 9 percent and 28 percent respectively in the three months ended April 30.

Overall same-store sales on a constant currency basis rose 7 percent. Analysts on average had expected an increase of 2.7 percent, according to Thomson Reuters I/B/E/S.

Tiffany expects earnings of between $4.50 and $4.70 per share for the year ending January 2019, compared with an earlier forecast of $4.25 to $4.45 per share. The company expects net sales to increase in the high-single percentage digits year-over-year.

First-quarter net sales rose 14.8 percent to $1.03 billion, topping analysts' estimates of $959.4 million.

Excluding one-time items, the company earned $1.14 per share, while Wall Street had expected 83 cents per share.

Tiffany also announced a new $1 billion stock buyback program.