So far this year, Tiffany's has shown no signs that it can turn things around. Shares are down nearly 15 percent since January and nearly 26 percent in the last 12 months. Earnings have been just as bad, posting negative growth for four consecutive quarters. In its Q4 analyst call, Tiffany's guided similar results for the first quarter and fiscal year. This includes minimal growth on a constant currency basis with earnings ranging from flat to a mid-single-digit decline.
Analysts are expecting earnings per share of 69 cents on $922.68 million in revenue, according to the Estimize consensus data. Compared with a year earlier, this reflects a 14 percent decline on the bottom line and 4 percent on the top. Earnings estimates have been cut 11 percent since its last report, on negative sentiment toward earnings this quarter.
In the past year, Tiffany's and its peers have been hit hard from the strong U.S. dollar, changing consumer spending trends and overall economic volatility. Currency headwinds have adversely impacted both non-U.S. sales and tourist spending in the United States. Meanwhile, mounting consumer debt has contributed to the declining demand for luxury goods. Between rent, student loans and credit card debt, purchasing jewelry has become less of a priority for U.S. consumers.