=Tiffany & Co (TIF) reported earnings on Thur 8/25/16 (b/o)

Tiffany & Co beats by $0.12, reports revs in-line; reaffirms FY17 EPS, sales guidance :

• Reports Q2 (Jul) earnings of $0.84 per share, $0.12 better than the Capital IQ Consensus of $0.72; revenues fell 5.9% year/year to $931.6 mln vs the $931.37 mln Capital IQ Consensus. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales declined 6% and 9%, respectively.
  • In the Americas, total sales of $434 million in the second quarter and $837 million in the first half were both 9% below last year, with declines of 9% and 10%, respectively, in comparable store sales.
  • In the Asia-Pacific region, total sales -6% to $230 million and comparable store sales declined 12%.
  • Japan sales +10%; Europe -12%. 
• Co reaffirms guidance for FY17, sees EPS down mid-single digits to ~$3.60-3.68 vs. $3.62 Capital IQ Consensus; low single digit sales decline, based on the Company's plans and assumptions, including: (i) worldwide gross retail square footage increasing 2%, net through 11 openings, 6 relocations and 9 closings; (ii) adj. operating margin below the prior year's 19.7% due to an anticipated increase in gross margin (although at a considerably lesser rate in the second half than in the first half of the year) more than offset by SG&A expense growth; (iii) interest and other expenses, net unchanged from 2015; (iv) an effective income tax rate slightly lower than the prior year; (v) the U.S. dollar unchanged from current spot rates for the balance of the year; and (vi) weighted average diluted shares outstanding modestly lower than in fiscal 2015.