Tiffany's Sales Shine in Second Quarter

RAPAPORT... Tiffany & Co. raised its outlook for the year,after strong US and Asia sales yielded better-than-expectedresults. Revenue rose 12% to $1.08 billion year on year in the secondfiscal quarter ending July 31, while comparable-store sales - at branches openfor at least a year - climbed 8%, the jeweler said Tuesday. Profit jumped 26%to $145 million. The company now expects full-year sales to grow by high-single-digitpercentages, as opposed to its earlier projection of mid-single-digits. Theretailer also raised its guidance for net earnings to between $4.65 to $4.80per share, from its previous range of $4.50 to $4.70. However, the jewelerexpects strategic investment spending to rise due to output for new marketingcampaigns and as renovations of its New York City flagship store get underway. "While in the early stages of addressing our six keystrategic priorities, we are pleased with initial customer reactions to our newcommunication, product and in-store initiatives," said CEO Alessandro Bogliolo."The launch of Paper Flowers...is moving toward full global distribution and webelieve our evolved brand message is gaining momentum." Sales in the US and Asia buoyed Tiffany's results, withincreased spending by local consumers, as well as tourists, the company said.Revenue for the Americas jumped 8% year on year to $475 million, and in AsiaPacific rose 28% to $301 million for the three months ending July 31. Japan'sresults climbed 11% to $155 million for the quarter. Tiffany has launched several marketing campaigns during theperiod, running New York-themed ads featuring celebrities geared towardsattracting a millennial audience. It also launched the Paper Flowers collection,the first by chief designer Reed Krakoff. Tiffany share price rose nearly 7% following the resultsbefore the market opened on Tuesday.