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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)
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