Tiffany (NYSE: TIF) reported fourth-quarter earnings that dropped more than 75% from a year earlier as pocketbooks remained clamped throughout the holidays. It certainly seems that the market for high-end jewelry was far lower during the holidays, thanks to the current economic mess.The retailer reported earnings of 25 cents per share compared to 96 cents per share a year ago. Taking staff cuts and other costs out of the equation, TIF's earnings checked in at 85 cents per share. The ex-item results were better than Wall Street's expected 80 cents per share. While revenue dropped 20% to $841.2 million, it topped the consensus estimate of $838 million.
Looking ahead, TIF forecast a full-year sales decline of roughly 11% and earnings between $1.50 and $1.60 per share. The Street forecast full-year earnings of $1.71 per share.
So far, it seems investors are more impressed by the nickel beat in ex-item earnings than disappointed with the retailer's forecast as Tiffany shares opened over 5.5% higher. The stock rallied since the beginning of month, but a negative reaction from investors could send shares tumbling. If this is the case, the first viable level of support is the $19 level, followed by the $18 level. Nevertheless, shares of TIF have tumbled during the past three months, and the current economic environment doesn't suggest a pick up in luxury spending anytime soon.
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Reader Comments (Page 1 of 1)
3-23-2009 @ 10:31PM
Mademoiselle de Mysterie said...
Thank you for posting news on TIF. I appreciate getting the low-down in a "short but sweet" blog post such as this.