Tiffany & Co. Q1 Profit Tops Estimates; Maintains Full Year Earnings Outlook

(RTTNews) - Tiffany & Co. (TIF) reported that its first-quarter net earnings declined to $105 million, or $0.81 per share, from $126 million, or $0.97 per share, a year ago, due to the lower sales as well as higher expenses primarily related to marketing spending.

On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $0.70 for the quarter. Analysts' estimates typically exclude special items.

Worldwide net sales were $962 million, 5% below the prior year. On a constant-exchange-rate basis excluding the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 1%. Worldwide comparable store sales were 1% below last year. Analysts expected revenue of $918.68 million for the quarter.

The company said its first-quarter net sales and earnings declines reflected the negative effects from the strong U.S. dollar and a difficult year-over-year sales comparison in Japan.

For the fiscal year ending January 31, 2016, the company continues to forecast minimal growth in net earnings per share from the $4.20 (excluding charges) earned in fiscal 2014. This forecast anticipates net earnings in the second quarter declining at a more moderate rate than in the first quarter, followed by expected double-digit percentage net earnings growth in the second half of the year.

Frederic Cumenal, CEO, said: "Despite the better-than-expected first quarter results, our forecast for minimal earnings growth for the full year continues to reflect caution regarding our expectations for fiscal 2015 in light of the strong dollar and other global economic uncertainties. However, we believe we can return to a healthier rate of double-digit EPS growth over the long-term."