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Shares of the No. 1 U.S. jeweler fell nearly 4
percent before the bell on Friday.
Tiffany said sales fell 1 percent in the fourth quarter ended
Jan. 31 and are expected to fall 10 percent in the quarter
ending April. Profit is expected to drop 30 percent.
New York-based Tiffany in January had cut its profit forecast
for the year, saying the stronger dollar not only reduced the
value of sales outside the United States, but also hurt sales to
tourists in the country.
Tourists spend more than $200 billion annually in the United
States, but growth in 2015 is expected to decelerate as would-be
visitors balk at the stronger dollar and grapple with weaker
economies at home.
Tiffany gets about half of its revenue from outside the United
States, while tourists to the country account for a bulk of
domestic sales.
The dollar had risen about 9 percent against a basket of major
currencies from November to January.
The company's revenue slipped to $1.29 billion from $1.30
billion, while analysts were expecting a 1.5 percent rise to
$1.31 billion, according to Thomson Reuters I/B/E/S.
Tiffany reported net income of $196.2 million, or $1.51 per
share, in line with the analysts' average estimate.
It posted a loss of $103.6 million, or 81 cents per share, a
year earlier due to a legal charge.
Tiffany's shares closed at $86.37 on Thursday, down nearly 3
percent since the company cut its profit forecast in January.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Savio D'Souza)
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