Benzinga Breakdown: Tiffany's Q1 Earnings

EPS $0.69 vs $0.68 est, down 15 percent year-over-year

Sales $891 million vs $915 million est, down 7 percent year-over-year

Comps down 9 percent

EPS included tax benefit of $0.05/share, EPS excluding tax benefit was $0.64

Management expects EPS to decline in Q2 2016 at a similar rate to the first quarter

What Does That Mean For The Company?

Tiffany & Co. TIF lowered FY16 guidance, expecting mid-single-digit percentage declines in EPS year-over-year.

What Does That Mean For The Investor?

One ray of hope in the quarterly results was improved margins — 61.2 percent, up 2.72 percent from last year. The margin improvements come from effective changes in the sales mix as well as price increases.

There is some support out there for the idea of Tiffany & Co as a turnaround story. Tuesday, Nomura analysts remained optimistic that the company’s financial targets are obtainable. Nomura maintains a Buy rating and a $90 price target.

Within the first hour of Wednesday's regular trading session, Tiffany & Co. was down 1.75 percent at $62.73.

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