Tiffany investors got a surprisingly strong earnings report from the upscale jeweler after profits rose, driven by lower raw material costs and price hikes. Bobbi Rebell reports.
Tiffany delivering a gem of an earnings report to investors and driving the stock higher on Thursday morning. The upscale jeweler reported an unexpected rise in second-quarter profit. Tiffany was able to raise prices and sold more jewelry with higher profit margins. Raw material costs were also lower. But there are some worrisome signs. Tiffany sales dropped for the seventh straight quarter and missed analyst estimates. Oppenheimer's Brian Nagel writing "We look upon the fiscal Q2 (July) results that Tiffany reported today as mixed. Sales at the chain remain decidedly soft.. Unfavorable macro headwinds are unlikely to abate any time soon. " Tourist traffic was lower, and also hurt sales at rivals, like Michael Kors and Kate Spade.