Shares of Tiffany & Co. are expected to remain under pressure as the company faces a more challenging retail environment, said one analyst following the specialty retailer's lowered earnings guidance Friday.
After trimming its earnings outlook on declining U.S. sales, shares of Tiffany & Co. slumped 11.2 percent to close Friday at $35.08.
In a statement the day after retailers posted weak same-store sales for December, Tiffany said comps for the holiday season declined 2 percent in the U.S.
"Tiffany's holiday sales results were mixed, but we still expect to achieve strong earnings growth in the fourth quarter ending Jan. 31," said Michael Kowalski, chairman and chief executive officer, in a statement.
Goldman Sachs retail analyst Adrianne Shapira wrote in a research note that Tiffany's shares have "come under pressure as results show that even Tiffany is not immune to the current macro slowdown," and that she expects those shares to remain pressured "until a new and achievable bar has been set." She added that U.S. comps declined quickly and sharply from November's healthy 7 percent gain as store traffic softened, with January experiencing the same negative trends.
The specialty jewelry store said worldwide sales from Nov. 1 to Dec. 31 rose 8 percent over the prior year to $867.3 million. On a constant exchange rate basis, worldwide sales rose 6 percent as comps gained 1 percent.
On the U.S. front, retail sales increased 4 percent to $449.1 million. However, increased spending per transaction was offset by a decline in the number of transactions. International retail sales jumped 18 percent to $334.8 million. On a constant exchange rate basis, sales gained 12 percent while comps rose 5 percent. Direct marketing sales of $70 million was essentially flat over last year, and other sales fell by 20 percent to $13.5 million due to a reduction in wholesale sales of diamonds by $2.9 million.
Tiffany said it expects fiscal year 2007 earnings per diluted share to be between $2.25 and $2.28, compared with its previous forecast of between $2.25 and $2.30.
Kowalski said that, despite soft U.S. sales, the company is still projecting strong fourth-quarter earnings growth, excluding onetime charges, that it expected prior to the holiday season due to "substantially better gross margins and expense savings."The ceo added that the company has "aggressive plans for 2008," which include adding stores in the U.S. and overseas that would expand its store base by 12 to 15 percent, and introducing a "wide range of new products."
The company will provide updated guidance when it posts fourth-quarter and full-year results on March 24.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye