Tiffany shares plunge after the jewelry retailer reported disappointing sales for the holiday period, hurt by a stronger dollar and weakness in the Americas. Leah Duncan reports.
A stronger dollar dulling Tiffany's shine. The jewelry retailer reported disappointing sales for the two-month holiday period. Tiffany cut its full year earnings forecast to $4.15 to $4.20 a share down from $4.20 to $4.30. Sales in the Americas fell one percent, while sales in Japan continued to show weakness, falling 16 percent to $113 million. In Europe and the Asia- Pacific regions sales increased. The stock took a hit in early trading falling seven percent to around $94. CEO Michael Kowalski said, "Clearly, sales for the holiday period were disappointing overall, with significant variability in performance by region and by product category." The company's newer jewelry lines such as the Atlas Collection and Tiffany T - which have been pretty popular with customers - just not enough to offset challenges from the stronger U.S. dollar, which is expected to linger. Barclays analyst Joan Payson. "We are lowering our 2015 EPS estimates to $4.40 from $4.85 as we expect currency headwinds to persist, and now see more uncertainity around trends in the Americas. We also expect less of a benefit to gross margins next year than what we have witnessed in 2014 YTD. Tiffany is expected to report fourth quarter results on March 20th.