Shares of Tiffany & Co. (TIF: Quote) are down sharply Thursday morning after first quarter profits from the luxury-goods retailer missed analysts' expectations.
Quarterly revenues topped Street view by a whisker, but Tiffany slashed its outlook for the full-year 2012.
Sales growth was strong in Japan and other parts of Asia, but rose only modestly in the U.S. and Europe.
"In terms of our sales for the first quarter, regions outside the Americas performed generally as expected. However, the 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," Chairman and CEO Michael Kowalski said in a statement.
The New York-based world's second-largest luxury-jewelry retailer reported net earnings of $81.53 million or $0.64 per share for the first quarter, edging up from $81.06 million or $0.63 per share in the prior-year quarter.
Excluding items, adjusted net earnings for the year-ago quarter would have declined from $86.07 million or $0.67 per share.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.69 per share for the third quarter. Analysts' estimates typically exclude special items.
Worldwide net sales for the quarter increased 8 percent to $819.17 million from $761.02 million in the same quarter last quarter, and topped seventeen Wall Street analysts' consensus estimate of $817.45 million by a whisker.
"We are updating our forecast for the full year to reflect these first quarter results and to reflect lower near-term expectations," Kowalski added, citing concers about the strength of the global economy.
Looking ahead to fiscal 2012, Tiffany slashed its earnings guidance to a range of $3.70 to $3.80 per share from the prior forecast of $3.95 to $4.05 per share.
Tiffany also now anticipates worldwide net sales in to increase 7 to 8 percent, down from the previous expectation calling for 10 percent growth.
Street is currently looking for full-year 2012 earnings of $3.97 per share, on annual revenue of $3.97 billion.
The company assumes that most of the expected annual earnings growth would occur in the fourth quarter, with earnings in the second and third quarters expected to be below last year.
TIF closed Wednesday's regular trading session at $61.80, up $0.62 on a volume of 2.90 million shares. In the past 52-week period, the stock has been trading in a broad range of $56.21 to $84.49.
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by RTT Staff Writer
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