Jewelry retailer Tiffany (TIF) - Get Report today announced earnings of 69 cents per share on revenue of $891.3 million for the first quarter of its fiscal year, in what has turned out to be a rough quarter for luxury brands. The company reported its first-quarter earnings Wednesday morning.
Analysts had not been optimistic about the retailer delivering growth, with those surveyed by Thomson Reuters estimating earnings of 68 cents per share on revenue of $915.1 million for the first quarter.
For the same time period last year, the company delivered earnings of 81 cents per share on revenue of $962.4 million.
Global sales were down 7% to $891 million in the first quarter, and comparable-store sales declined 9%, when compared to the same time period in 2015.
The Americas and Europe each saw a decline in sales of 9% in the quarter, compared with 2015. In the Americas, comparable-store sales fell 10%. The company attributed the decline in the region to softness in consumer spending and fewer foreign tourists.
In Europe, comparable-store sales were down 15%, compared with the first quarter of fiscal year 2015. The decline was led by France, which saw less tourist activity in the wake of the attacks in November 2015.
Japan was a bright spot for the company. Sales were up 8%, and comparable-store sales increased 12% due to increased consumer spending in the region.
CEO Frederic Cumenal said in a statement, "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."
Shares closed 0.17% down at $63.85 on Tuesday. The company was losing further ground in premarket trading, and was falling by 3.2%.
Prior to Wednesday's earnings, TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust Portfolio, said he would not buy the stock ahead of the earnings as the company is still "not that well run."