Before Wednesday's market open, Tiffany reported earnings of 74 cents a share, higher than the earnings of 70 cents a share analysts surveyed at Factset expected. But, the jewelry and specialty retailer reported first-quarter revenue of $900 million, badly below estimations for $915 million.
Plus, Tiffany reported a total same-store sales decline of 3%. In the U.S., comparable store sales fell 4%.
"We believe the Americas comp is likely volatile given changes in tourism flow, the need for more local customer demand and the opportunity to drive more customer traffic," Cowen & Co. analyst Oliver Chen said in a note this morning.
Shares of Tiffany plunged 8.7% to $85.00 in today's trading session.
For the full year, Tiffany reaffirmed its outlook for earnings per share and revenue to be higher by a mid-single-digit percentage.
"Our first-quarter results did not change our outlook for the full year," Tiffany CFO Mark Erceg said on a company earnings call. But, acknowledged that "it goes without saying, we need better sales growth."
In March, Tiffany boosted its board size to 13 members from 10 with the appointment of three new independent directors. The move was a direct result of the pressure it was facing from activist investor Jana Partners, which also pushed Tiffany, amid declining sales and profits, to oust former CEO Frederic Cumenal in February after he served just under two years.
Former CEO Michael J. Kowalski, and chairman of the board, has been leading Tiffany while assisting in the search for a new executive to take the helm.
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