Tiffany & Co. Q4 Profit Matches Estimates - Quick Facts

(RTTNews) - Tiffany & Co. (TIF) reported fourth-quarter net income of $196.18 million or $1.51 per share, compared to a loss of $103.60 million or $0.81 per share, prior year. The company's prior year results included a charge related to an adverse arbitration ruling. Excluding the charge, net earnings increased 3% from prior year. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $1.51 for the quarter. Analysts' estimates typically exclude special items. Net sales decreased 1% to $1.29 billion from $1.30 billion last year. Analysts expected revenue of $1.31 billion for the quarter. On a constant-exchange-rate basis which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales increased 3%.

For the fiscal year ending January 31, 2016, the company forecasts minimal growth in net earnings per share from the $4.20 (excluding charges) earned in fiscal 2014. The forecast anticipates a decline of approximately 30% in the first quarter's net earnings and a more modest decline in the second quarter, followed by expected double-digit percentage net earnings increases in the third and fourth quarters.

The company expects worldwide net sales to increase by a mid-single-digit percentage on a constant-exchange-rate basis with sales growth in all regions. The company expects worldwide net sales in the first quarter to decline by approximately 10%, as reported in U.S. dollars. Worldwide net sales are expected to increase by a low-single-digit percentage, as reported in U.S. dollars, in the second quarter.

Frederic Cumenal, president, said: "Tiffany is facing challenges from global economic uncertainties, especially from the effect of a strong U.S. dollar on the translation of foreign-denominated sales into dollars and on foreign tourist spending in the U.S. As a result, we have adopted a cautious approach in our planning for the coming year, anticipating modest growth in net sales and minimal net earnings growth for the full year; this assumes pressure on sales and earnings in the first half of the year followed by healthy growth in the second half. Longer-term, we see an exciting future for Tiffany as we pursue important expansion opportunities."