Tiffany & Company
) came up with soft holiday sales numbers as macroeconomic
headwinds continue to offset the company's positives.
Results were at the lower end of management's expectations as
comparable-store sales (comps) for the two months period ended
Dec 31, 2012, remained flat. On a constant-currency basis, comps
remained flat compared with a 1% increase in the comparable
prior-year period. Total worldwide net sales marked an increase
of 4% to $992 million during the period.
When compared to its peers,
Signet Jewelers Limited
), Tiffany seems to be losing market share as Zale witnessed a
2.3% increase in its comps, while Signet marked a 3.3% rise in
comps for the period under review.
Region wise, net sales in
increased 3% (2% in constant currency) to $516 million, comps
however, marked a decline of 2%. Sales from Internet and catalog
rose 4% during the period.
Net sales in
increased 2% to $119 million, while comps declined 1%. On a
constant-currency basis, net sales increased 2% and comps
remained flat during the period.
region marked an increase of 13% in net sales to $187 million,
while comps increased 10% during the period. On a
constant-currency basis, net sales increased 11%, while comps
rose by 7%.
Net sales came in at $153 million in
, down 5% year over year, while comps declined by an equal
magnitude. On a constant-currency basis, both net sales and comps
, which include wholesale sales of end goods to independent
distributors and wholesale sales of rough diamonds, more than
doubled to $17 million during the period.
Following soft holiday sales, the company now expects fiscal
2012 earnings to be at the lower end of its previously announced
forecast of $3.20 - $3.40 per share. The current Zacks Consensus
Estimate stands at $3.25 per share for fiscal 2012.
Tiffany holds a dominant position in the world jewelry market
due to its distinctive brand appeal and large geographic reach.
Going forward, the company intends to expand its distribution
network by adding stores in both new and existing markets and
expects net earnings to mark an increase of 6% to 9% in fiscal
As of December 31, 2012, Tiffany operated 274 stores
including, 115 in the Americas, 65 in Asia-Pacific, 55 in Japan,
34 in Europe and 5 in the U.A.E.
Currently, we maintain our long-term Underperform
recommendation on the stock. Moreover, shares of Tiffany hold a
Zacks Rank #5 (Strong Sell).
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
ZALE CORP NEW (ZLC): Free Stock Analysis
To read this article on Zacks.com click here.