Shares in the high-end jewellery company tiffany and co

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Shares in the high-end jewellery company tiffany and co

Post  yzf983221 on Sun 03 Jun 2012, 11:39 pm

Shares in the high-end jewellery company fell more than 7 per cent overnight in the US after its first-quarter results showed earnings growth had failed to meet forecasts.
Tiffany's net income rose to $US81.5 million ($83m), compared to $US81.1m a year ago, slightly below expectations. Worldwide revenue also rose by 8 per cent to $US819.2m in the quarter.
Chairman and CEO Michael J. Kowalski said, “In terms of our sales for the first quarter, regions outside the Americas performed generally as expected. However, the Americas region underperformed, continuing a soft trend that began in the last quarter of 2011 and compounded by the difficult comparison to substantial growth in last year’s first quarter.
"These sales results led to net earnings modestly trailing our expectations."
As a result, Tiffany downgraded growth forecasts for global net sales to between 7 per cent and 8 per cent, from 10 per cent.
Chief financial officer Pat McGuiness said that "conditions may remain soft for the next couple of quarters".
Growth remained strong in the Asia-Pacific as sales rose 17 per cent to $US195m, while Japan also saw 15 per cent growth.
As shoppers in the US revisited their spending options, sales in the Americas region only rose by 3 per cent to $US386m, as did levels in Europe.
Mr Kowalski said: "We are updating our forecast for the full year to reflect these first-quarter results and to reflect lower near-term expectations. Although we are very early into the second quarter, worldwide sales are currently increasing by a low single-digit percentage, reflecting difficult year-over-year comparisons and decelerating rates of economic growth in many countries."tiffany and co

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