Categories AlphaGraphs, Earnings, Retail

Tiffany stock falls after Q1 sales miss estimates; earnings beat

Jewelry store operator Tiffany & Co. (NYSE: TIF) Tuesday reported lower sales and earnings for the first quarter of 2019. Sales also missed analysts’ estimates, while earnings beat by a cent. The stock dropped about 4% in the pre-market session.

Tiffany Q1 sales down 3%

During the quarter, net sales were down 3% year-over-year to $1 billion, hurt by a 2% drop in comparable store sales. The top-line also came in below the estimates. All geographical regions registered a decrease in sales.

Consequently, net profit declined to $125 million or $1.03 per share from $142 million or $1.14 per share in the year-ago period. Earnings, meanwhile, topped expectations slightly.

Alessandro Bogliolo, CEO of Tiffany, said, “Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results.”

Total comparable store sales dipped 2%, and all the geographical regions witnessed decline in sales

During the quarter, Tiffany opened two company-operated stores, closed two stores and relocated two stores.

OUTLOOK

For fiscal 2019, the management expects worldwide net sales to increase by a low-single-digit percentage from last year, reflecting an increase of the same degree in comparable sales. Earnings, on a per share basis, are forecast to grow by a low-to-mid-single-digit percentage. The estimate for capital expenditures is $350 million.

Meanwhile, earnings a seen declining in the second quarter, owing to the continuing pressure on sales from lower foreign tourist spending, difficult comparisons to the year-ago period and sales deleverage on fixed costs.

DIVIDEND

The board of directors declared a regular quarterly dividend of $0.58 per share, representing a 5% increase, which will be paid on July 10 to shareholders of record on June 20.

Shares of Tiffany closed the last trading session higher but declined early Tuesday following the earnings report. They have gained 10% since the beginning of the year, after falling to a multi-year low in December last year.

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top