Tiffany Cuts Outlook After Holiday Sales Decline
Jeweler Tiffany cut its fiscal-year earnings outlook Friday as same-store sales fell 2 percent in the United States during the November-December holiday period.
The New York-based company also said it was analyzing its sales and earnings expectations for its next fiscal year, which begins on Feb. 1, given tepid demand at established U.S. stores and weak consumer spending.
Tiffany now expects net earnings of $2.40 to $2.43 per share for the year ending on Jan. 31. In November, it had forecast profit of $2.49 to $2.54.
Both outlooks include a charge for the sale of the company's Little Switzerland business and losses from operations.
Tiffany also reduced its full-year sales growth forecast by to 14 percent from 15 percent.
Total sales for the November-December period rose 8 percent to $867.3 million.
In the United States, total retail sales increased 4 percent to $449.1 million as fewer people made purchases, while those who did spent more.
International same-store sales rose 5 percent on a constant currency basis, while total sales rose 12 percent to $334.8 million.
In November, Tiffany reported a better-than-expected third-quarter profit, helped by stronger international sales, and raised its full-year profit forecast.