Tiffany & Co, a high-end jeweler (TIF.N) lowers its full year profit forecast due to a disappointing shopping season during the holidays and other weakness in Japan. The company’s overall shares decreased 14.4% that amounts to $88.52 last Monday, a decline considered by Tiffany & Co to be their intra-day biggest in almost 11 years.
Tiffany & Co stated that it is now expecting a year end adjusted profit that would end January 31 amounting in $4.15 to $4.20 for every share, lower than previous forecasts that amounted at $4.20 to $4.30.
Thomson Reuters I/B/E/S reported that analysts on average are forecasting full-year earnings at $4.31 for every share. Laura Champine, an analyst Canaccord Genuity Inc mentioned in a note that the company’s Americas segment seems to run out of much needed steam.
Americas same-store and overall sales, which are currently Tiffany’ & Co’s biggest market, experienced al 1% decrease during the two-month shopping holiday period that ended December 31. Overall sales, meanwhile increased by 6% compared to last year’s performance.
Frederic Cumenal, Tiffany’s President stated that because the current stronger dollar, translation of results were not the only thing that was affected, overall sales from visiting tourists was also impacted in the US.