Tiffany & Co.’s Q4 sales, 2018 forecast disappoints
Increased operational investments took a toll on Tiffany & Co.’s fourth quarter results, and are expected to “hinder near-term growth.”
For the quarter ended Jan. 17, net earnings were $62 million, or $0.50 per diluted share, 61% below $158 million, or $1.26 per diluted share in the same period last year. However, net earnings in 2017 included charges recorded in the fourth quarter totaling $146 million related to the enactment of the U.S. Tax Cuts and Jobs Act.
Net sales rose 9% to $1.3 billion, in line with estimates of $1.31 billion. Comparable store sales were 1% above last year, falling below analysts’ estimates of a 2.8% rise.
For the year, net earnings were $370 million, or $2.96 per diluted share. This was 17% below $446 million, or $3.55 per diluted share, last year.
“We believe that increasing investment now in certain areas, such as technology, marketing communications, visual merchandising, digital and store presentations, which will hinder pre-tax earnings growth in the near-term, is needed to generate that lasting long-term growth,” said Alessandro Bogliolo, the company’s CEO.
Looking ahead to 2018, Tiffany & Co. expects worldwide net sales to increase by a mid-single-digit percentage over the prior year. Net earnings will increase to a range of $4.25 - $4.45 per diluted share, compared to analysts' estimates of $4.37 per share, according to Thomson Reuters.
Comparable sales growth, which, beginning in 2018, will include company-operated stores, e-commerce and catalog sales, will hit low-to-mid-single-digit increases.
For the quarter ended Jan. 17, net earnings were $62 million, or $0.50 per diluted share, 61% below $158 million, or $1.26 per diluted share in the same period last year. However, net earnings in 2017 included charges recorded in the fourth quarter totaling $146 million related to the enactment of the U.S. Tax Cuts and Jobs Act.
Net sales rose 9% to $1.3 billion, in line with estimates of $1.31 billion. Comparable store sales were 1% above last year, falling below analysts’ estimates of a 2.8% rise.
For the year, net earnings were $370 million, or $2.96 per diluted share. This was 17% below $446 million, or $3.55 per diluted share, last year.
“We believe that increasing investment now in certain areas, such as technology, marketing communications, visual merchandising, digital and store presentations, which will hinder pre-tax earnings growth in the near-term, is needed to generate that lasting long-term growth,” said Alessandro Bogliolo, the company’s CEO.
Looking ahead to 2018, Tiffany & Co. expects worldwide net sales to increase by a mid-single-digit percentage over the prior year. Net earnings will increase to a range of $4.25 - $4.45 per diluted share, compared to analysts' estimates of $4.37 per share, according to Thomson Reuters.
Comparable sales growth, which, beginning in 2018, will include company-operated stores, e-commerce and catalog sales, will hit low-to-mid-single-digit increases.