Tiffany & Co. (NYSE: TIF) reported first-quarter 2016 results before markets opened Wednesday morning. The luxury goods company posted adjusted diluted earnings per share (EPS) of $0.69 on revenues of $891 million. In the same period a year ago, Tiffany reported EPS of $0.81 and revenue of $962.4 million. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.68 and $915.1 million in revenue.
On a constant currency basis, net sales and same-store sales fell 7% for the quarter. On a GAAP basis, EPS for the quarter came to $0.64, which excludes a tax benefit related to the settlement of a tax examination.
U.S. first-quarter same-store sales fell 9% on a constant exchange rate basis. Total U.S. sales fell 8% on a constant-currency basis.
CEO Frederic Cumenal said:
As expected, this was a difficult quarter in terms of both sales and earnings growth. We faced numerous challenges, including continued pressure from foreign tourist spending in Europe, the U.S. and Asia, particularly in Hong Kong. …  From a strategic perspective, we believe that our initiatives will enhance our ability to provide our customers with extraordinary products and experiences and ultimately contribute to improved financial results.
In its outlook statement, Tiffany expects fiscal year 2016 adjusted diluted EPS to be down in the mid-single digits. The company also expects that diluted EPS in the second quarter to decline by a similar rate as occurred in the first quarter. Worldwide fiscal year revenues are forecast to decline by a low single-digit percentage compared with 2015 revenues.
The analysts’ consensus second-quarter estimate for EPS of $0.79, down from last year’s actual second-quarter EPS of $0.86. For the full year, the consensus estimate calls for EPS of $3.76 and revenues of $4.11 billion.
Shares traded down 3% early Wednesday, at $61.93, in a 52-week range of $59.73 to $96.43. Thomson Reuters had a consensus analyst price target of $80.89 before the results were announced.
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