Tiffany & Co. (TIF) shares soared over 5% in pre-market trading Tuesday after reporting July-quarter results and raising its outlook for the second half. This extends the recent rally since the stock retreated 9% from Aug. 9 to Aug. 15.
The 180-year-old, New York-based iconic jeweler posted a net sales increase of 12% globally, $1.1 billion in revenue, and a same-store sales increase of 8% in its fiscal second quarter. Earnings per share advanced 27%, year to year, to $1.17.
The rise this morning builds on a trend of strong earnings results this year, as the stock rallied 20% on the strength of its earnings release in May on the strength of new strategies to engage millennials and launch new products like PAPER FLOWERS, which were compelling enough to convince Jim Cramer to buy.
"Our activities in these areas will further accelerate in the remainder of the year with special focus on product personalization, high jewelry, a whimsical holiday campaign and the unveiling in North America of TIFFANY TRUE, an innovative diamond ring concept," CEO Alessandro Bogliolo said in a statement this morning.
Additionally, a multi-year remodeling of the company's flagship store on Fifth Avenue in Manhattan is aimed at bolstering a more modern appearance for the retailer.
To be sure, challenges remain as the company has garnered cautious grades from analysts as of late, with a recent downgrade from Oppenheimer & Co. on the basis of global impacts contributing to an aforementioned 9% slide earlier.
"In the nearer-term, we are simply concerned that recent shifts in global currencies could weigh upon domestic sales to foreign tourists and knock shares from now peakish valuations," analyst Brian Nagel explained in his downgrade to "perform" from "outperform."
Further, trade battles with China pose a risk to the jeweler's burgeoning Chinese business should they work to weaken the Chinese luxury consumer, as management pointed to these consumers as contributing greatly to a 28% increase in Asia-Pacific region revenue year over year.
Tiffany's earnings call will be broadcast at 8:30 a.m. ET as analysts will be eager to hear company's plan to sustain the momentum, as macro issues pressure its profit engines.