Tiffany shares nosedive after dismal holiday report
Global sales only rose 4% in November and December. That wasn't good enough for the company or its investors.
Worldwide sales at Tiffany increased 4% to $992 million in the two-month period ending Dec. 31. The company, which posted a 7% increase during the same period a year earlier, clearly expected better.
Strength in the Asia-Pacific region, which posted a 13% gain, failed to overcome the weakness in the Europe and the Americas, where sales rose 2% and 3% respectively.
"Holiday period sales growth was at the low end of our expectations," said Michael J. Kowalski, chief executive officer, in a press release.
The company now expects earnings at the low end of its previous forecast of $3.20 to $3.40 per share for the fiscal year ending Jan. 31. Analysts surveyed by Bloomberg on average expected earnings of $3.31. Tiffany is forecasting net earnings growth of 6% to 9%. The company will provide more details regarding its outlook when it reports its full-year results in March.
Tiffany wasn't the only retailer in Wall Street's doghouse Thursday. Aeropostale (ARO) shares also plunged after the retailer of casual apparel for young people slashed its fourth-quarter earnings outlook on disappointing holiday sales, MarketWatch reported.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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