Tiffany's Is Rallying

Shares in Tiffany & Co. were up more than 2.5% Wednesday morning pre-market after the company reported profits had surged 16% in Q2 thanks to sales growth abroad.

The luxury jeweler also raised its 2014 earnings guidance $US4.20 and $US4.30 a share, up from its previous forecast of $US4.15 to $US4.25 a share.

“These healthy second-quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions,” outgoing CEO Michael Kowalski said in a statement. “In addition, an improved gross margin was an important contributor to the earnings growth.”

Sales in Japan slumped 13%, but this was likely due to the country’s sales tax hike.

Same-store sales climbed 3%. Earnings came in at $US124.1 million, or $US0.96 a share, versus forecasts for $US0.85 a share.

Tiffany’s shares are up 9% year-to-date and 15% since May.

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