Tiffany weakness mean problems in luxury retail?

Tiffany's weak holiday season
Tiffany's weak holiday season

Tiffany & Co. cut its full-year profit outlook after reporting flat global holiday sales Monday, but that's not a sign that there are cracks in high-end retail, Oppenheimer and Co. analyst Brian Nagel told CNBC.

"This is more of a Tiffany issue," he said in an interview with "Squawk on the Street."

"Holiday sales weakness is not necessarily new to Tiffany. … I think this was once again reflective of, I don't want to say executional missteps, but kind of Tiffany's challenges through the holiday selling season."

The luxury goods retailer said Monday that its holiday sales in the Americas fell one percent.

Tiffany 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.

A man walks past a Tiffany & Co. store along Wall Street in New York, Jan. 12, 2015.
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Nagel believes there is some truth to the notion that a strong dollar likely led to tourists in the U.S. buying less.

"It doesn't take much in terms of Tiffany to move the needle. You could have at the margin less foreign tourism spending in the United States—in New York and other key markets," he said.

However, he called Tiffany a great company and very dominant brand and is not giving up on the stock.

"There's a significant tailwind. Despite a weaker holiday, I think Tiffany continues to benefit significantly from lower input costs, primarily in the form of gold and silver," Nagel said.

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Additionally, Tiffany's new "T" line, which was introduced in September, is resonating with consumers, he added. The merchandise is geared toward fashion customers and is a step away from the emphasis on engagement and holiday gifts.

However, he cautioned that any short-term investor looking for a quick bounce back will probably be disappointed.

—The Associated Press contributed to this report.