Tiffany & Co. posted a slight rise in first-quarter profit despite a dip in sales and said earnings for the rest of the year would be in line with or slightly above estimates if consumer confidence and spending improve.
The luxury retailer's net income edged up 1% to $30.8 million, or 20 cents a share, beating by 2 cents the average estimate of analysts polled by First Call/Thomson Financial. Sales declined 3% to $336.4 million, while sales at stores open at least a year dropped 8%, both compared with stellar sales a year ago.
Tiffany said sales in the current quarter already are showing an upward trend and it expects U.S. same-store sales to rise in the mid- to high-single digits in the second half of the year. Tiffany shares rose 39 cents to close at $34.08 on the NYSE.