NEW YORK (TheStreet) -- Tiffany & Co. (TIF - Get Report) stock is down 3.68% to $65.16 on heavy trading volume this afternoon following the release of its sales results for the two months ended December 31.
"Do I think Tiffany is a buy down here? I've got so many retailers that yield 3 and change - Macy's (M), Kohl's (KSS). Wal-Mart (WMT) was just closing some stores that weren't doing well. I like all three of those more than I like Tiffany," TheStreet's Jim Cramer said earlier today.
The jewelry retailer reported that net sales were down 6% year-over-year. On a constant currency basis, sales fell 3% and U.S. comparable-store sales declined by 8% compared to the year-ago period. Tiffany expects full-year earnings to drop 10% year-over-year.
Following Tiffany's 2015 third quarter earnings results, Cramer had wondered why the company continually issues guidance above what it is capable of delivering.
"This is [a company] where rich people come to America and buy Tiffany, but they're not because the dollar is too strong," Cramer explained on CNBC's Squawk on the Street this morning.
"Do I think the Tiffany model is broken? I need to see the dollar stop going higher, but if the Federal Reserve is going to continue with this idea that it may raise multiple times, that's not going to happen," Cramer added.
Even so, Tiffany has a habit of forecasting high numbers, Cramer noted.
"That has been the theme. It's time for management to get a little more conservative," Cramer stated. "Other retailers have been excellent at forecasting things aren't great."
About 6.55 million shares of Tiffany have been traded so far today, well above the company's average trading volume of roughly 1.71 million shares per day.
Separately, TheStreet Ratings team rates Tiffany as a "buy" with a ratings score of B-.
The company's strengths such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations should have a greater impact than the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: TIF
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.TIF data by YCharts