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Tiffany 2nd-quarter profit declines on 1-time charge, but sales beat expectations

Tiffany 2nd-quarter profit declines on 1-time charge, but sales beat expectations

Tiffany & Co. on Thursday said second-quarter profit fell 10 percent, hurt by a charge related to selling its Little Switzerland retail business, but sales beat expectations.
Net income for the quarter ended July 31 fell to $37 million (euro27.14 million), or 26 cents per share, from $41.1 million, or 29 cents per share in the year-ago period. Results include a 17-cent-per-share charge for the pending sale of its Little Switzerland business.
Revenue rose 20 percent to $662.6 million (euro486.1 million) from $554.7 million last year. Sales growth for the jeweler was broad-based across the U.S. and international markets, the company said.
Analysts polled by Thomson Financial expected net income of 34 cents per share on revenue of $643.4 million (euro472.01 million).
Same-store sales rose 17 percent in the U.S. and 7 percent on a constant-exchange-rate basis internationally.
Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Company Chairman and Chief Executive Michael J. Kowalski said sales exceeded expectations and raised yearly guidance based on current retail conditions.