Tiffany & Co. (NYSE: TIF) reported second-quarter 2015 results before markets opened Thursday. The luxury goods company reported adjusted diluted earnings per share (EPS) of $0.86 on revenues of $991 million. In the same period a year ago, Tiffany reported EPS of $0.96 and revenue of $992.9 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.91 and $1 billion in revenue.

On a constant currency basis, net sales and same-store sales rose 7%. On a GAAP basis, EPS totaled $0.81, which includes an impairment charge of $0.05 per share that Tiffany recorded for a loan to a diamond mining company.

U.S. second-quarter net and same-store sales in 2014 were both flat compared with the prior year. On a GAAP basis, total sales declined 2% in the second quarter and rose 1% in the first half of the year.

Tiffany’s Asia/Pacific region saw a constant-currency rise of 9% in net sales and a boost of 6% in same-store sales. Japanese stores posted a second-quarter net sales increase of 27% and same-store sales increase of 21%.

Tiffany’s full-year EPS guidance will disappoint investors and analysts. The company said adjusted EPS growth would be “2% to 5% below” last year’s total of $4.20 per diluted share. The consensus estimate called for EPS of $4.26 for the current year. In addition the company said:

This forecast assumes no growth in net earnings in the third quarter (excluding the debt extinguishment charge referenced above in the prior year’s quarter) and a resumption of growth in the fourth quarter. 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 million.

The consensus third-quarter analysts’ estimate for EPS is $0.84, an increase from last year’s actual third-quarter EPS of $0.76, the number Tiffany said Thursday it is expecting again this year. The stock will take a beating.

Shares were down about 6.7% in premarket trading Thursday, at $79.40, below the 52-week range of $81.50 to $110.60. Thomson Reuters had a consensus analyst price target of around $103.00 before the results were announced.

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