- Tiffany (TIF +1.1%) reports comparable-store sales fell 2% in Q2.
- Geographic revenue: Americas: $439M (+1%); Asia-Pacific: $235M (+2%); Japan: $140M (+1%); Europe: $114M (+3%); Other: $32M (+74%).
- Gross margin rate improved 40 bps to 62.3% due to favorable product input costs and a shift in sales mix toward higher-margin jewelry.
- SG&A expense rate +20 bps to 43.4%.
- Operating margin rose 10 bps to 18.9%.
- Inventory decreased 4% Y/Y to $2.2B.
- Store count +1 Y/Y to 312.
- The company saw no disruptive effect from the New York flagship store despite its proximity to Trump Tower and management attributed sales softness primarily to lower spending by foreign tourists.
- FY2017 Guidance: Net sales: increase by a low single-digit percentage; Operating margin rate: in line Y/Y; Interest and other expenses, net: $35M to $40M; Tax rate: ~33%; Diluted EPS: increase by a high-single-digit percentage; Free cash flow: ~$450M; Capex: $250M.
- Now read: Tiffany & Company Is Outclassed By Signet Jewelers And Movado
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