Tiffany cuts profit forecast as holiday shopping disappoints
(Reuters) - Upscale jeweler Tiffany & Co (TIF.N: Quote) cut its profit forecast for the full year, citing a disappointing holiday shopping season and further weakness in Japan.
Tiffany shares fell as much as 14.4 percent to $88.52 on Monday, their biggest intra-day decline in nearly 11 years.
The company said it now expected an adjusted profit of $4.15-$4.20 per share in the year ending Jan. 31, down from its prior forecast of $4.20-$4.30.
Analysts on average were expecting full-year earnings of $4.31 per share, according to Thomson Reuters I/B/E/S.
"The Americas segment appears to have run out of steam," Canaccord Genuity Inc analyst Laura Champine wrote in a note.
Both overall and same-store sales in the Americas, the company's biggest market, fell 1 percent in the two-month holiday shopping period ended Dec. 31, Tiffany said.
Sales in that segment had risen 6 percent in the same period last year.
Tiffany President Frederic Cumenal said the stronger dollar not only affected the translation of results, it also had an impact on sales from tourists in the United States.
Sales to tourists makes up for the bulk of revenue at the company's flagship Fifth Avenue store in Manhattan. The store contributes nearly 8 percent to total sales. Continued...