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The
company's shares fell 5.6 percent to $87.95 before the bell on
Wednesday.
The dollar has strengthened versus other currencies, so some of
Tiffany's issues in the United States are more currency-related,
Edward Jones analyst Brian Yarbrough told Reuters.
Comparable-store sales in the Americas, which account for nearly
half of Tiffany's total revenue, fell 4 percent, while the
company posted a 3 percent decline in the Asia-Pacific region in
the first quarter.
Analysts polled by Consensus Metrix expected a 0.5 percent drop
in the Americas and a growth of 1.3 percent in the Asia-Pacific
region in the first quarter ended April 30.
"Mainland China was very strong, but other parts of China were
weaker and Macau and Hong Kong have been struggling now for a
little while," Yarbrough added.
Tiffany, whose one-of-a-kind pieces are a regular feature on
Hollywood red carpets, has also been struggling to attract young
shoppers, who tend to prefer cheaper, chic brands such as
Pandora A/S and Alex and Ani.
The luxury retailer, which ousted CEO Frederic Cumenal in
February, struck a surprise deal with activist shareholder JANA
Partners to add three directors to its board to revive
struggling sales and entice younger shoppers.
Worldwide sales at stores established for more than a year fell
3 percent for the sixth straight quarter, compared with a 1.1
percent rise expected by Consensus Metrix.
The company also said it expected its net sales to increase by a
low single-digit percentage for the fiscal year ending Jan. 31,
2018.
Excluding a tax benefit of 2 cents per share, Tiffany earned 72
cents, beating analysts' average estimate of 70 cents, according
to Thomson Reuters I/B/E/S.
Net sales rose marginally to $899.6 million in the first
quarter, but missed analysts' average estimate of $913.71
million.
Net income increased to $92.9 million, or 74 cents per share,
from $87.5 million, or 69 cents per share, a year earlier.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by Martina
D'Couto)
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