Shares of Tiffany’s stock plummeted.
Tiffany & Co. disappointed analysts and investors this week with its first-quarter earnings, reporting that same-store sales fell 4 percent from the same period a year ago.
One reason for the poorer-than-anticipated results was decreased spending by tourists in numerous countries, according to the company (NYSE: TIF). But local consumers also spent less, CNBC reports.
Shares of Tiffany’s stock plummeted 8 percent on Wednesay following the earnings announcement. That’s despite the fact that net earnings were $93 million, or 74 cents per diluted share, up from $87 million, or 69 cents a share, a year ago.
Michael J. Kowalski, chairman of the board and interim CEO, said the company is “focused on executing long-term strategies to achieve stronger and sustainable performance through product introductions, optimization of our store base, effective marketing communications and the delivery of experiences that resonate with our customers.”
Overall sales were $899.6 million. Analysts had predicted $914.4 million.
In the Americas, total sales of $392 million were 3 percent lower than the prior year and comparable store sales declined 4 percent, the company stated. Management “attributed the overall sales declines to lower spending by both foreign tourists and local customers.”
Bloomberg quotes Brian Yarbrough, analyst at Edward Jones & Co., saying, “It felt maybe they were making some headway, but sales were disappointing, which is really what matters to the market right now.”
Read more at CNBC