Jeweler Tiffany & Co reported a sharp increase in third-quarter profit today, boosted by a gain from the sale of its Tokyo flagship store, and raised its full-year profit forecast.
Net income rose to $98.9 million, or 71 cents a share, in the quarter ended October 31, from $29.1 million, or 21 cents a share, a year earlier.
The company recorded an aftertax gain of 48 cents a share from the sale of the Tokyo store, which it also leased back in the quarter.
Sales jumped 18 per cent to $627.3 million.
International sales advanced 18 per cent on a constant currency basis, helped by growth in most markets including Japan, which has previously faced declining sales.
US retail revenue was up 12 per cent, as sales in its New York flagship store rose 25 per cent, spurred by local customers as well as tourists. Same-store sales rose 8 per cent in US stores.
Tiffany raised its fiscal 2007 earnings forecast to $2.69 to $2.74 a share from continuing operations, including the gain from the Tokyo flagship sale. It had previously forecast earnings of $2.64 to $2.69 per share.
The company also increased its sales forecast for the year to growth of about 15 percent versus 14 percent earlier.