The “Squawk on the Street” team on CNBC delivered the good news that Tiffany & Co. (NYSE:TIF) is performing beyond Wall Street estimates. The company’s trading higher in pre-market after reporting 16% increase in earnings and a 7% jump in net sales, which totalled $124 million and $993 million respectively.
The success is seen worldwide, with Americas and Asia Pacific Region being its most prominent leaders. Japan is the only country which portrayed a decline for the luxury brand. It is not surprising that Tiffany & Co. (NYSE:TIF) decided to rise its guidance for the current year.
Also it is worth to note that Tiffany & Co. (NYSE:TIF) is selling at $101.70 up by 0.91 (0.92%), the stock being up by over 25% over the past year. However, pinpointing the reasons of this phenomenon is a tough nut to crack since the company is in a whole new rejuvenation process. The margins could have been the net effect of selling more products at lower price points or focusing on higher margins from exclusive goods.
Also it is difficult to tell if luxury products regain popularity or the management team shows excellence in execution. In general it can be a bit of both, only the next quarters can show us which the most influent force is.
As with regard to the changes in the leading team of experts the company is more than ready to accommodate the new CEO, who is about to take over the control from Michael Kowalski, who devotedly served in this position for more than 15 years. They also started to tell the story of Francesca Amfitheatrof, Tiffany & Co. (NYSE:TIF) first ever female Design Director, to whom a big article in Elle Magazine is dedicated. Hopefully, only good surprises await Tiffany & Co. (NYSE:TIF) and its shareholders in the upcoming quarters.