NEW YORK, United States — Alessandro Bogliolo, Tiffany & Co.’s new chief executive officer, is getting a boost from China as he pursues a turnaround of the 180-year-old jewellery brand.
Same-store sales increased 2 percent in the Asia-Pacific region last quarter, compared with a 1.4 percent decline predicted by analysts. The company pointed to strong growth in mainland China for fueling the sales.
Bogliolo, who was hired earlier this year after hedge fund activist Jana Partners pushed for changes, has rolled out new designs and stepped up marketing. But it’s shown less of an impact in Europe and North America, where sales didn’t keep pace last quarter.
“These latest financial results marginally exceeded our expectations,” he said in a statement on Wednesday. But the company has the potential to “drive higher operating margins and earnings growth.”
Earnings amounted to 80 cents a share, topping the 76-cent estimate of analysts. Net sales came in at $976.2 million, well ahead of the $957 million projected.
The results sent the shares up as much as 2.1 percent to $96.06 in early trading on Wednesday. They had already gained 21 percent so far this year, lifted by comeback hopes.
Globally, same-store sales growth was breakeven, when holding currency constant. Analysts predicted a 0.1 percent decline, according to Consensus Metrix.
The New York-based company also maintained its sales and earnings guidance for the year.
By Stephanie Wong; editors: Nick Turner and Jonathan Roeder.