Retail

What to Expect From Tiffany Earnings

Chris Lange

Published: March 17, 2016 11:35 am

Last Updated: January 13, 2020 11:50 am

Tiffany & Co. (NYSE: TIF) is scheduled to report its fiscal fourth-quarter financial results before the markets open on Friday. The consensus estimates from Thomson Reuters call for $1.41 in EPS on $1.22 billion in revenue. The same period from last year had $1.51 in EPS on $1.29 billion in revenue.

This jewelry retailer reported its sales results for its holiday period back in January. Results were negatively affected by the strong U.S. dollar and weak tourist spending in a number of markets.

Looking at it on a constant-exchange-rate basis, worldwide net sales declined 3% (due to declines in the Americas and Asia-Pacific offsetting growth in Japan and Europe) and comparable store sales declined 5%. There were no noteworthy differences in performance among jewelry categories. Reported in U.S. dollars, worldwide net sales of $961 million were 6% lower than the prior year.

If we look ahead to the next year, while Tiffany’s financial plans for 2016 have not been finalized, management currently believes that the strong dollar and global macro challenges likely will result in minimal growth in net sales and net earnings, as reported in dollars and excluding charges in 2015, for the year.

A few analysts weighed in on Tiffany ahead of the earnings report:

• Citigroup downgraded it to Neutral with at $78 price target.
• Oppenheimer reiterated a Buy rating.
• Deutsche Bank reiterated a Hold rating.
• Jefferies reiterated a Buy rating with a $100 price target.

So far in 2016, Tiffany has underperformed the broad markets with the stock down 8%. Over the past year, the stock lost nearly 16%.

Shares of Tiffany were trading up 1.7% at $71.04, with a consensus analyst price target of $81.83 and a 52-week trading range of $59.73 to $96.43.