Tiffany, the world's second-largest luxury jewellery retailer, rose the most in six months after higher-than-projected sales in the Americas helped make up for a slowdown in Asia last quarter.
Same-store sales increased 11pc in the Americas in the third quarter, the New York-based company said in a statement yesterday. That topped the 6.1pc predicted by analysts, according to Consensus Metrix.
The sales fell 3pc in the Asia-Pacific region and 6pc in Japan, where a new consumption tax hampered orders.
Chief executive officer Michael Kowalski is increasing marketing and pushing deeper into fashion jewellery with the Tiffany T collection, launched this year. Those moves have resonated in the US, where the economy is outpacing much of the world. Tiffany also is raising prices, helping pad its profit margins.
"A lot of people see the Americas region as the biggest opportunity for profit growth," said Brian Yarbrough, an analyst at Edward Jones. "The new marketing, the new product designs in the fashion jewellery seem to really be taking hold."
Its shares rose as much as 5.3pc to $110.60 each in New York, the biggest intraday increase since May 21. Tiffany, ranking second to Financiere Richemont in global sales of luxury jewellery, had climbed 13pc in the year to date. A one-time loss from repaying debt dragged down net income in the third quarter, which on ended October 31.
Tiffany kept its profit forecast of $4.20 to $4.30 a share for the full year but scaled back its sales projection, calling for a rise in the mid-to-high single digits. The company had previously said growth would be in high-single digits. (Bloomberg).