Tiffany & Co reports holiday sales down 1%; comps declined 2%; sees FY19 EPS guidance at lower end of prior range; provides FY20 guidance (85.26)
- Worldwide net holiday sales declined 1% to $1.04 billion and comparable sales declined 2%.
- Co issues downside guidance for FY19 (Jan), sees EPS at lower end of prior range $4.65-4.80 vs. $4.77 S&P Capital IQ Consensus.
- FY20 Outlook: Given external challenges and uncertainties, management's preliminary view for fiscal 2019 includes: (i) worldwide net sales increasing by a low-single-digit percentage over the prior year as reported and on a constant-exchange-rate basis; (ii) net earnings per diluted share increasing by a mid-single-digit percentage (which assumes a higher effective tax rate); and (iii) an expected decline in net earnings in the first half of the year, reflecting sales pressures (from lower foreign tourist spending and the effect of a stronger U.S. dollar) as well as expenses related to the annualized effect of higher strategic investment spending that began in the second quarter of 2018, among other factors.