Tiffany cuts full-year profit outlook as holiday sales dip partly on stronger US dollar

MarketsAssociated Press

Tiffany's holiday sales edged down 1 percent and the jewelry retailer lowered its full-year profit outlook, hurt by a stronger U.S. dollar and some weakness in the Americans and Japan.

Company shares slid 5 percent in premarket trading Monday.

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Chairman and CEO Michael Kowalski said that sales in the Americas fell slightly during the two-month period, while sales in Japan continued to be soft. Sales in the Asia-Pacific region and in Europe climbed.

Worldwide sales for the two-month period ended Dec. 31 totaled $1.02 billion. Stripping out the impact of foreign currency exchange translation, worldwide sales rose 3 percent.

Tiffany & Co. now expects full-year earnings in a range of $4.15 to $4.20 per share. Its prior guidance was for $4.20 to $4.30 per share.

Analysts surveyed by FactSet had been projecting earnings of $4.31 per share.

Tiffany's shares fell $6.20 to $97.25.

President Frederic Cumenal said that due to the stronger U.S. dollar and its cautious approach to 2015, Tiffany will likely plan for low-to-mid single-digit sales and earnings growth for the year.

The New York company expects to provide an update when it reports its fourth-quarter and 2014 financial results on March 20.