Tiffany's holiday sales edged down 1 percent and the jewelry retailer cut its full-year profit outlook, hurt by a stronger U.S. dollar and some weakness in the Americas and Japan.
Company shares slid more than 11 percent in morning trading on Monday.
Chairman and CEO Michael Kowalski said that sales in the Americas fell slightly during November and December, while sales in Japan remained soft. Sales in the Asia-Pacific region and in Europe climbed.
David Schick of Stifel Nicolaus said in a client note that the strong U.S. dollar likely hurt U.S. sales to foreign tourists.
Worldwide sales for the two months that ended Dec. 31 totaled $1.02 billion. Stripping out the impact of foreign currency exchange translation, worldwide sales rose 3 percent.
Tiffany & Co. now expects full-year earnings in a range of $4.15 to $4.20 per share. Its prior guidance was for $4.20 to $4.30 per share.
Analysts surveyed by FactSet had been projecting earnings of $4.31 per share.
Tiffany's shares fell $11.77 to to $91.68. (Get the latest quote here.)
Schick anticipated Tiffany's stock would move lower Monday on the news, but doesn't see any change in the company's core fundamentals or brand. For that reason, the analyst said that he would expect any weakening in the U.S. dollar to benefit Tiffany.
President Frederic Cumenal said that due to the stronger U.S. dollar and its cautious approach to 2015, Tiffany will likely plan for low-to-mid single-digit sales and earnings growth for the year.
The New York company expects to provide an update when it reports its fourth-quarter and 2014 financial results on March 20.