Luxury spending buoys Tiffany’s to strong quarter

Tiffany & Co.’s net income jumped 30 percent in the second quarter, propelled by strong growth across all regions as high-income shoppers continued to be drawn to its jewelry and other goods.

The New York company’s results handily beat Wall Street’s expectations, and it raised its full-year profit forecast again due to the better-than-expected performance.

Tiffany’s stock surged $5.90, or 9.3 percent, to close at $69.01 while the broader markets ended the session up less than 2 percent.

Tiffany, known for its turquoise boxes, has a customer base that leans heavily toward high-income consumers. Such shoppers tend to gravitate toward luxury goods. Spending on luxury items has rebounded faster than other segments since the recession as wealthier consumers feel more confident in making purchases, boosting earnings for companies like Tiffany.

For the period ended July 31, Tiffany earned $90 million, or 69 cents per share. That’s up considerably from the $67.7 million, or 53 cents per share, it earned a year earlier.

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Nurofen painkillers recalled; company suspects sabotage

The British company that makes Nurofen Plus painkillers recalled the tablets Friday because of suspected sabotage involving the use of drugs used to treat psychosis.

The Reckitt Benckiser company said there have been five reported cases of other manufacturers’ medicines found in boxes of Nurofen Plus.

“Sabotage is suspected and we are working with the police on a formal investigation to find the person or persons responsible,” the company said in a statement.

Consumers are being urged to return any packs of the painkiller to a pharmacy, said Dr. Aomesh Bhatt, Medical Director of Nurofen Plus.

Distribution has been halted after some of the tablets were found to contain a drug often used to treat psychosis and schizophrenia.

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Half of Americans using social networks, study says

A new study says half of all American adults are now on social networks, and use among baby boomers is growing.

A report from the Pew Internet & American Life Project says that of the adults who use the Internet, nearly two-thirds use social networks such as Facebook or Twitter. That’s up slightly from a year ago.

Among baby boomers (Americans born between 1946 and 1964), 32 percent say they use a social networking site on a typical day. That’s up from 20 percent a year ago.

Seniors are also getting into social networking, the study found.

— From news service reports

 


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