--> TIF -7.15% Pre open 8k shares traded for nomw
Tiffany & Co misses by $0.05, misses on revs; lowers guidance
Reports Q2 (Jul) earnings of $0.86 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus Estimate of $0.91; revenues fell 0.2% year/year to $991 mln vs the $1 bln consensus; comparable store sales increased 7%.
- Gross margin (gross profit as a percentage of net sales) of 59.9% in the second quarter was equal to the prior year, while gross margin of 59.5% in the first half was modestly above 59.1% a year ago.
- Co sees no earnings growth in Q3 (~$0.73) vs. $0.84 Capital IQ Consensus Estimate.
- Co lowers guidance for FY16, to EPS of 2-5% below last years's $4.20 ($3.99-4.12), vs minimal growth prior guidance and $4.23 Capital IQ Consensus Estimate. Also for the full year, this forecast does not assume recording any further similar loan impairment charges; this forecast does continue to assume inventories increasing at a rate below sales growth; capital expenditures of $260 million; and free cash flow in excess of $400 mln. All assumptions are approximate and may or may not prove valid.
- "In light of the difficult environment exacerbated by the strong dollar and ongoing external uncertainties, we are tempering our full year earnings forecast. However, we remain focused on pursuing longer-term growth opportunities that strengthen Tiffany's position among the world's important luxury brands."