TIF- 29.90 bid- still a great short
Rough Quarter for Tiffany
By TSC Staff
11/11/2004 8:20 AM EST
The shine came off Tiffany (TIF:NYSE - commentary - research) Thursday after the upscale jeweler reported a sharp drop in third-quarter earnings and lowered future guidance.
The New York-based retailer had net income of $20.8 million, or 14 cents a share, vs. $ 28 million, or 19 cents a share, in the year-ago period. Revenue increased 7% to $461.2 million. Same-store sales rose just 1%. International retail sales rose 10%.
Analysts were expecting 19 cents a share, according to Thomson First Call.
"These disappointing results do not affect our long-term strategic direction," the company said in a statement. "In Japan, we are continuing to reposition our product assortment and support new product introductions with additional marketing and the opening of two freestanding stores. We are seeing some traction from these initiatives, but results were still below our expectations and it would be premature to draw conclusions."
Looking ahead, the company said it can "achieve 5%-10% net earnings growth in the fourth quarter," resulting in full-year EPS of $1.43 to $1.48, vs. its previous expectation of $1.55 to $1.60 a share. The consensus forecast is for $1.54 a share.
Shares were off $3.39, or 10.5%, to $28.74 in premarket trading. |
