Tiffany is surging

Tiffany & Co. shares jumped 6% in pre-market trading on Wednesday after the company posted profits that beat analysts’ estimates, and signalled plans for expansion.

The luxury jeweller reported diluted earnings per share of $US0.81, down 17%, but beating forecasts for $US0.69, according to Bloomberg.

Tiffany posted sales of $US962.4 million, topping estimates for $US919 million. Sales dropped 5% year-over-year, but excluding the foreign currency impact, sales rose 1%.

CEO Frederic Cumenal wrote in the statement: “We started the year facing well-known challenges from both global economic uncertainties and the effect of a strong U.S. dollar on the translation of foreign-denominated sales into dollars and on foreign tourist spending in the U.S., as well as a difficult sales comparison in Japan.”

“Despite those factors, our first quarter results for net sales, as well as for gross margin and net earnings, were somewhat better than we anticipated. First quarter highlights also included the continuing success of the stylish TIFFANY T jewellery collection, as well as the launch of our extraordinary CT60™ watch collection.”

Cumenal said the company plans to grow existing jewellery collections and open new stores “in a number of important markets.”

During the quarter, the company opened two stores in China — Shanghai and Hangzhou — and one in Miami.

NOW WATCH: 5 morning rituals to keep you productive all day long

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.