Tiffany forecasts decline in full-year profit

Send a link to a friend  Share

[August 27, 2015]  (Reuters) - Luxury jeweler Tiffany & Cosaid profit would decline in for the full year and reported lower-than-expected sales for the second quarter as a strong dollar discouraged tourist spending in the United States and reduced the value of overseas sales.

The company's shares fell 7 percent in premarket trading on Thursday.

"The adverse effects from the strong dollar have been even more significant than initially expected, Chief Executive Frederic Cumenal said in a statement.

Sales at New York-based Tiffany, which gets roughly half of its sales from outside the Americas, have been reduced by 2-7 percent in the past three quarters due to currency factors.

The average value of the dollar <.DXY> in the May-July quarter has risen about 19 percent from a year earlier.

Tiffany's total revenue fell 0.2 percent to $990.5 million in the quarter ended July 31, missing the average analyst estimate of $1 billion, according to Thomson Reuters I/B/E/S.

Excluding currency effects, revenue rose 7 percent.

Net income fell 15.4 percent to $104.9 million, or 81 cents per share. Excluding items, Tiffany earned 86 cents per share, while analysts had expected 91 cents.

The company said it expects net earnings to decline 2 percent to 5 percent for the full year.

Tiffany's shares were trading at $79 before the bell on Thursday. Up to Wednesday's close of $85.08, the stock had fallen 20.4 percent this year.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

[© 2015 Thomson Reuters. All rights reserved.]

Copyright 2015 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

Back to top