Jewelry company Tiffany & Co.'s sales for the critical holiday season rose 4 percent globally, while a key revenue metric was basically flat compared with a year ago. The retailer's holiday sales increase was lower than expected, and it now anticipates full-year earnings at the lower end of its prior forecast.
Shares fell more than 9 percent in premarket trading Thursday.
The November through December holiday season is crucial for retailers, as it can make up as much as 40 percent of their revenue for the year.
Tiffany's worldwide sales totaled $992 million. The company said that revenue at stores open at least a year was unchanged from the prior-year period. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
REUTERS
A Tiffany & Co. store front display is seen in Bethesda, Maryland this past November.
The New York company reported its biggest holiday sales gain in the Asia-Pacific region, where sales climbed 13 percent to $187 million. Revenue at stores open at least a year increased 7 percent.
In the Americas, sales rose 3 percent to $516 million. Its flagship New York store posted a 2 percent drop in revenue at stores open at least a year, as did its branch stores. Tiffany said the results were relatively similar across most of the region. Online and catalog sales for the Americas climbed 4 percent.
Sales also rose slightly in Europe and fell 5 percent in Japan.
Tiffany also said that other sales more than doubled mostly because in July five of its stores in the United Arab Emirates were converted from independently operated distribution to company-run stores.
The company said that its holiday sales growth was weaker than expected. It now foresees full-year earnings at the lower end of its previous outlook of $3.20 to $3.40 per share. Analysts polled by FactSet expect earnings of $3.29 per share.
Tiffany's stock declined $5.81, or 9.2 percent, to $57.45 before the market open.
The company said that it is being conservative on its 2013 sales growth expectations due to uncertain economic conditions. It currently anticipates earnings will rise 6 percent to 9 percent.
Tiffany & Co. had 274 stores at 2012's end. It will report its full-year financial results in March.
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Tiffany holiday sales weaker than expected
