Tiffany Shares Drop Following Q3 Results

Shares of

Tiffany & Co.

dropped over 5 percent in pre-market trading after the company reported results for the third quarter on Tuesday. The New York-based company posted quarterly net income of $91 million, or $0.70 per share, up from $38.3 million, or $0.29 per share, in the year-ago quarter. Its sales slipped 2.2 percent to $938.2 million from $959.6 million. However, analysts were expecting earnings of $0.75 per share on revenue of $971 million. The average estimate among 51 Estimize users was for earnings of $0.75 per share and revenue of $973.12 million. Its comparable store sales rose 1 percent for the quarter. Gross margin expanded to 60.2 percent from 59.5 percent. At October 31, 2015, the company had $725 million in cash and cash equivalents and short-term investments, versus $383 million a year ago. Frederic Cumenal, chief executive officer, said, "As expected, the strong U.S. dollar continued to put pressure on our financial results, specifically from the translation of non-U.S. sales into dollars and on foreign tourist spending in the U.S. In addition, we believe that volatile, uncertain economic and market conditions in the U.S. and other regions are affecting consumer spending, causing us to maintain a cautious near-term outlook." For the full year, Tiffany now projects net earnings to decline 5 percent to 10 percent from last year's $4.20 per share. Tiffany shares fell 5.42 percent to $72.40 in pre-market trading.