Tiffany & Co.Strong sales of higher priced jewelry such as engagement rings and diamonds in the United States and overseas helped Tiffany & Co.'s third-quarter net income rise 27 percent, another sign luxury spending is rebounding quicker than other areas.
The jewelry maker famous for its iconic turquoise box also on Wednesday forecast a strong holiday season and raised its yearly guidance well above expectations.
Shares rose $2.81, or 4.8 percent, to $61.08 in morning trading.
Reversing a trend seen during the recession, sales of items under $500, such as silver jewelry, declined, but most other product categories, including fine jewelry, designer jewelry and engagement rings, increased.
Luxury spending has rebounded as the affluent have recovered from the recession faster than others as the stock market rebounds. Luxury retailers Saks Inc. and Coach Inc. also both recently posted quarterly results that beat expectations.
Net income rose to $55.1 million, or 43 cents per share, from $43.3 million, or 34 cents per share. Excluding costs related to a pending move of headquarters staff, net income was 46 cents per share. That beat analyst expectations of 37 cents per share, according to a poll by Thomson Reuters.
Revenue rose 14 percent to $681.7 million. Analysts expected $652.8 million.
Deere & Co.The world's largest maker of agricultural equipment reversed a loss in its fiscal fourth quarter as it reported improved conditions on U.S. farms but continued weakness in construction equipment sales.
