Earnings Preview: Tiffany & Co.

Tiffany & Co (TIF) is expected to report Q2 earnings before market open Thursday, Aug. 28, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 54c on revenue of $719.88M. The consensus range is 48c to 60c for EPS, and revenue of $668M to $739M, according to First Call. In May, Tiffany forecast FY08 EPS $2.80 to $2.90 vs. First Call consensus of $2.83 on worldwide net sales growth of approximately 10%.

Analyst Views

Marie Driscoll, a Standard & Poor's Equity Research analyst, expects sales to rise 10% and profit to grow year-over-year on international sales in European countries that will boost growth and help mitigate weak U.S. and Japan sales. Additionally, Driscoll believes sales of non-jewelry items may help mitigate weakness in the luxury good sector.

Analysts and investors will listen for comments from management on the upcoming holiday season and how they expect the company will be affected by lower discretionary spending and rising diamond prices. The retailer recently filed an appeal to the United States Court of Appeals for the Second Circuit from the decision of the District Court which held that eBay (EBAY) is not responsible to police its auction site to seek out and remove counterfeit goods before they can be sold to unsuspecting consumers.