Tiffany & Co. (TIF) Loses Luster as Q1 Mixed, Lowered FY12 Outlook Draws Concern
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Price: $75.76 +0.37%
EPS Growth %: +9.4%
Financial Fact:
Cost of sales: 392.26M
Today's EPS Names:
MPAA, LTON, KFY, More
EPS Growth %: +9.4%
Financial Fact:
Cost of sales: 392.26M
Today's EPS Names:
MPAA, LTON, KFY, More
Trade TIF Now!
Tiffany & Co. (NYSE: TIF) shares are getting slammed in early trade Thursday following the jewelers first-quarter 2012 results and a lowered outlook.
Revenue for the diamond ring namesake rose about 8 percent to $819 million, with comparable-store sales rising 4 percent. The Street was looking for a more modest ascent to $816.9 million.
Net earnings in the period fell 5.3 percent to $81.53 million, or 64 cents per share. Analysts were looking for EPS of 69 cents on average.
Gross margin compressed 100 basis points to 57.3 percent.
No surprise here, but Asia-Pacific and Japan led sales growth with a 16 percent and 13 percent increase, respectively. Sales in Americas were up 3 percent while European sales rose 7 percent.
"[T]he Americas region underperformed, continuing a soft trend that began in the last quarter of 2011 and compounded by the difficult comparison to substantial sales growth in last year’s first quarter," commented CEO Michael J. Kowalski. "These sales results led to net earnings modestly trailing our expectations."
Looking ahead, Tiffany lowered its fiscal 2012 worldwide sales outlook from 10 percent growth to a range of 7 to 8 percent. Its 2012 EPS outlook was lowered from a range of $3.95 to $4.05 to $3.70 to $3.80. Tiffany said "approximately $0.20 of the decrease is tied to a reduction in operating expectations and $0.05 is related to the additional debt incurrence." The Street was modeling EPS of $3.97.
Shares are down about 8.4 percent following results.
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Revenue for the diamond ring namesake rose about 8 percent to $819 million, with comparable-store sales rising 4 percent. The Street was looking for a more modest ascent to $816.9 million.
Net earnings in the period fell 5.3 percent to $81.53 million, or 64 cents per share. Analysts were looking for EPS of 69 cents on average.
Gross margin compressed 100 basis points to 57.3 percent.
No surprise here, but Asia-Pacific and Japan led sales growth with a 16 percent and 13 percent increase, respectively. Sales in Americas were up 3 percent while European sales rose 7 percent.
"[T]he Americas region underperformed, continuing a soft trend that began in the last quarter of 2011 and compounded by the difficult comparison to substantial sales growth in last year’s first quarter," commented CEO Michael J. Kowalski. "These sales results led to net earnings modestly trailing our expectations."
Looking ahead, Tiffany lowered its fiscal 2012 worldwide sales outlook from 10 percent growth to a range of 7 to 8 percent. Its 2012 EPS outlook was lowered from a range of $3.95 to $4.05 to $3.70 to $3.80. Tiffany said "approximately $0.20 of the decrease is tied to a reduction in operating expectations and $0.05 is related to the additional debt incurrence." The Street was modeling EPS of $3.97.
Shares are down about 8.4 percent following results.
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