Tiffany & Co. (TIF) has reported a 3.31 percent fall in profit for the quarter ended Jan. 31, 2017. The company has earned $157.80 million, or $1.26 a share in the quarter, compared with $163.20 million, or $1.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $181.80 million, or $1.45 a share compared with $186.80 million or $1.46 a share, a year ago.
Revenue during the quarter went up marginally by 1.32 percent to $1,229.60 million from $1,213.60 million in the previous year period. Gross margin for the quarter expanded 108 basis points over the previous year period to 64.10 percent. Total expenses were 79.14 percent of quarterly revenues, up from 78.50 percent for the same period last year. That has resulted in a contraction of 64 basis points in operating margin to 20.86 percent.
Operating income for the quarter was $256.50 million, compared with $260.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $294.50 million compared to $298 million in the prior year period. At the same time, adjusted operating margin contracted 60 basis points in the quarter to 23.95 percent from 24.56 percent in the last year period.
Michael J. Kowalski, chairman of the board and interim chief executive officer, said, "Despite macroeconomic and geopolitical challenges in the past year that we believe will continue in 2017, we strongly believe that Tiffany's strategies are sound and that we have meaningful growth opportunities. Our management team is focused on accelerating the execution of our strategies to deliver extraordinary products, communications and experiences that will delight our customers around the world. Through strong leadership and this accelerated execution, we believe we are well-positioned to deliver attractive total shareholder return over the long-term."
Working capital increases
Tiffany & Co. has recorded an increase in the working capital over the last year. It stood at $2,940.80 million as at Jan. 31, 2017, up 5.84 percent or $162.30 million from $2,778.50 million on Jan. 31, 2016. Current ratio was at 5.65 as on Jan. 31, 2017, up from 4.81 on Jan. 31, 2016.
Debt moves up marginally
Tiffany & Co. has witnessed an increase in total debt over the last one year. It stood at $1,107.10 million as on Jan. 31, 2017, up 1.03 percent or $11.30 million from $1,095.80 million on Jan. 31, 2016. Total debt was 21.72 percent of total assets as on Jan. 31, 2017, compared with 21.36 percent on Jan. 31, 2016. Debt to equity ratio was almost stable at 0.37 as on Jan. 31, 2017, when compared with the last year.
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