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Tiffany cuts 1Q outlook on Japan store closings

Tiffany cuts 1Q outlook on Japan store closings

Tiffany & Co. lowered its first-quarter earnings guidance Tuesday because of citing store closings and limited hours in Japan resulting from the earthquake and tsunami.
The dimmer outlook came as the jeweler said strong holiday demand and new products helped its fourth-quarter net income rise 29 percent.
Tiffany is one of the U.S. retailers most exposed to Japan's economy and appetite for luxury goods. Of Tiffany's 233 stores, 56 are in Japan. It's also one of the first companies to specify the business impact of the quake.
The jewelry maker known for its turquoise box now expects first-quarter earnings of about 57 cents per share, down from a previous forecast 62 cents per share.
Analysts surveyed by FactSet predicted lower earnings of 55 cents per share.
The company's stores in the Kanto and Tohoku regions, which make up more than half of its Japanese sales, were closed or had reduced hours after the disasters. Physical damage was limited to only a few stores, the company said.
The retailer expects Japanese sales, 18 percent of its business, will drop 15 percent in the first quarter.
For the full year, the company anticipates adjusted earnings of $3.35 to $3.45 per share. Wall Street forecasts $3.70 per share.
Fourth-quarter net income increased to $181.2 million, or $1.41 per share, for the period ended Jan. 31. That compares with $140.4 million, or $1.09 per share, a year ago.
Excluding a charge tied to moving its New York headquarters staff, earnings from continuing operations were $1.44 per share.
Analysts expected earnings of $1.39 per share.
Its stock gained $2.89, or 5 percent, to $60.18 in premarket trading Monday.
Revenue improved to $1.1 billion from $981.4 million, matching expectations. The company reported sales increased across all regions and said new products, such as its yellow diamond collection, helped its performance.
Tiffany's full-year earnings climbed 39 percent to $368.4 million, or $2.87 per share, from $264.8 million, or $2.11 per share.
Adjusted earnings from continuing operations were $2.93 per share.
Annual revenue rose 14 percent to $3.09 billion from $2.71 billion.


Updated : 2021-05-08 10:28 GMT+08:00