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Weakness in the global economy and a strong dollar have reduced
tourist spending on luxury items in the United States.
Tiffany's reluctance to offer promotions also discouraged
thrifty shoppers, especially during the holiday season.
The company said on Friday that it expected profit per share to
fall by 15-20 percent in the current quarter and by 5-10 percent
in the second quarter, based on the trends seen so far.
Sales at its established stores open for at least a year fell 10
percent in the Americas in the fourth quarter. Analysts had
expected a drop of 9.4 percent, according to research firm
Consensus Metrix.
The company's net income declined nearly 17 percent to $163.2
million, or $1.28 per share, in the quarter ended Jan. 31.
Excluding items, Tiffany earned $1.46 per share, beating the
average analyst estimate of $1.40, according to Thomson Reuters
I/B/E/S.
Its net sales fell 5.6 percent to $1.21 billion, but were in
line with the average estimate.
(Reporting by Ramkumar Iyer and Yashaswini Swamynathan in
Bengaluru; Editing by Kirti Pandey)
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