American luxury jeweler Tiffany & Co. has surprised the market with stronger-than-expected second quarter earnings. An increase in the wholesale of diamonds, and higher demand in the Japanese market offset a decline in same-store sales. Here's Liling Tan with the breakdown.

 

It was a good day for Tiffany & Co. here on Wall Street, after the iconic American jeweler reported worldwide net sales of 960 million dollars, up 3 percent from the same period last year. That beat market estimates, as analysts had forecast a more modest increase of around 930 million dollars. Tiffany's management attributed this to diamond wholesales, as well as wholesale volumes in Asia, and strong e-commerce demand, which offset a 2 percent decline in worldwide same-store sales.

 

Looking at key markets. In the Americas - Tiffany's biggest market where the promise of happily ever after is synonymous with diamond rings - sales rose one percent while comparable store sales fell one percent, primarily on lower spending by foreign tourists. In Europe, sales grew 3 percent, bolstered by wholesale demand and new stores. Asia Pacific saw a 2 percent increase in sales. There, strong growth in the China market was offset by weakness in most other Asian countries. Japan, which accounts for 15 percent of Tiffany's global revenue, was a bright spot. It was the only market that saw an increase in comparable store sales, up 3 percent, due to local spending.

 

Summer tends to be a soft season for jewelry purchases, but Tiffany's quarter earnings managed to outperform expectations growing 9 percent to $115 million dollars. Looking at its full year outlook, Tiffany sees sales on track to grow by a low single-digit percentage, partly on plans to open ten more stores, relocate seven and close seven. Liling Tan, CGTN, New York.