Tiffany Misses Forecasts, Cuts Outlook, Shares Rise

Sales slipped in Europe and the U.S., but rose sharply in Japan

   

Tiffany & Co. (NYSE:TIF) announced on Monday that it earned $91.8 million during the second quarter, up 2% from $90 million in the same period last year.

The iconic New York jeweler recorded revenue of $886.6 million, an increase of 2% from $872.7 million in 2011. But that fell short of the $891.1 million that Wall Street had expected, the Associated Press noted.

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EPS for the quarter was 72 cents, also missing the 74 cents that analysts had forecast.

Despite the results, Tiffany shares rallied, jumping more than 6% in Monday morning trading to over $62 a share.

The company lowered its earnings guidance for the year from prior estimates of between $3.70 and $3.80 a share, to between $3.55 and $3.65 a share.

Wall Street is looking for full-year earnings of $3.65 a share.

Tiffany forecasts an increase of between 6% and 7% in full year revenue over last year. That’s down from previous predictions of a rise of between 7% and 8%.

Company officials attributed the lower-than-expected results to continuing fallout from the weak worldwide economy. North American and European sales dipped 1% compared to last year, while Japanese sales jumped 11%.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/tiffany-misses-forecasts-cuts-outlook-shares-rise/.

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