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Tiffany 2Q misses expectations, cuts 2012 outlook

Tiffany 2Q misses expectations, cuts 2012 outlook

Tiffany & Co.'s net income rose 2 percent in the second quarter as revenue improved, but the performance missed Wall Street's expectations and the jewelry company cut its full-year guidance.
Tiffany caters to wealthy shoppers, but even those customers are keeping a close eye on their spending thanks in part to difficult economic conditions and volatility in Europe.
Tiffany, known for its blue boxes, earned $91.8 million, or 72 cents per share, for the period ended July 31. That compares with $90 million, or 69 cents per share, a year earlier.
Analysts expected earnings of 74 cents per share.
Revenue for the New York company rose 2 percent to $886.6 million from $872.7 million. Wall Street forecast $891.1 million.
Chairman and CEO Michael J. Kowalski said in a statement that Tiffany's sales growth has been hurt by tough economic conditions and a difficult comparison with last year. The retailer is also continuing to deal with high product-related costs, but said that those costs have moderated a bit.
Sales in the Americas and Europe both edged down 1 percent. Japan's sales increased 11 percent, while sales in the Asia-Pacific region rose 1 percent. Other sales climbed 12 percent as Tiffany converted five stores in the United Arab Emirates to company-run retail stores.
Revenue at stores open at least a year dipped 1 percent on a constant currency basis. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Tiffany said that it now expects 2012 earnings of $3.55 to $3.70 per share, down from $3.70 to $3.80 per share. Analysts predict $3.65 per share. It also trimmed its revenue forecast. The retailer now foresees revenue rising 6 percent to 7 percent for the year. Its prior guidance was for a 7 percent to 8 percent increase.
The company's stock gained $3.50, or 6 percent, to $62 before the market opened on Monday.
Tiffany said that it still expects earnings will decline in the third quarter and increase in the fourth quarter.


Updated : 2021-06-18 14:02 GMT+08:00