Tiffany's Stock Drops After Profit And Sales Miss, Outlook Disappoints

Tiffany & Co.'s stock slumped 7.7% in premarket trade Thursday, after the high-end jewelry and accessories retailer reported fiscal second-quarter earnings and sales that missed expectations, and provided a downbeat outlook. Earnings for the quarter ended July 31 fell to $104.9 million, or 81 cents a share, from $124.1 million, or 96 cents a share, in the same period a year ago. Excluding non-recurring items, EPS came in at 86 cents, missing the FactSet consensus of 91 cents. Sales slipped to $990.5 million from $992.9 million, below the FactSet consensus of $1 billion, as a decline in sales in the Americas offset growth in Asia and Europe. Same-store sales in the Americas were flat with a year ago, missing the FactSet consensus of 1% growth. For the full year, Tiffany expects EPS to decline in the range of 2% to 5% from the $4.20 reported last year, while the FactSet consensus was for an increase to $4.24. The stock has tumbled 20% year to date through Wednesday, while the S&P 500 has lost 5.8%.