Strong dollar pressures Tiffany in 3rd quarter
NEW YORK (AP) — Tiffany's fiscal third-quarter results missed analysts' estimates, hampered by a strong dollar and uncertain economic conditions. The luxury jeweler also lowered its full-year earnings guidance.
CEO Frederic Cumenal said in a statement that the strong dollar pressured its results when having to translate foreign sales into U.S. dollars and on foreign tourist spending in the U.S.
He also said that uncertain economic and market conditions in the U.S. and other regions are impacting consumer spending.
Tiffany earned $91 million, or 70 cents per share, for the period ended Oct. 31. A year earlier the New York-based company earned $38.3 million, or 29 cents per share. Excluding a charge, the prior-year's results were 76 cents per share.
The current quarter's performance missed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 74 cents per share.
Revenue totaled $938.2 million. This was short of the $972 million that Zacks was looking for.
Sales at stores open at least a year edged up 1 percent as growth in Japan, Europe and Asia-Pacific was partly offset by lower sales in the Americas.
This metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Tiffany & Co. said Tuesday that it now anticipates full-year earnings being 5 percent to 10 percent below last year's $4.20 per share. Its prior guidance was for full-year earnings coming in 2 percent to 5 percent below last year's results.
Tiffany shares rose $1.40, or 1.8 percent, to $77.95 in midday trading. Its shares are down 27 percent so far this year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TIF at http://www.zacks.com/ap/TIF
Keywords: Tiffany, Earnings Report