Jewelry retailer Tiffany & Co. (TIF) on Tuesday lowered its full-year earnings forecast, sending its shares plummeting in premarket trading.
The New York-based company said it now expects full-year earnings to range from $3.60 to $3.65 per share, down from a prior outlook of $3.70 to $3.80. Tiffany also reported that its worldwide net sales in the November-December period rose a less-than-expected 7%.
CEO Michael Kowalski commented that “restrained spending by consumers for fine jewelry” in the U.S. and Europe over the 2011 holiday season led to “markedly” lower sales in those regions. That decline was offset by strong growth in the company’s Asian segment.
Tiffany shares fell $5.04, or -7.5%, in premarket trading Tuesday.
The Bottom Line
Shares of Tiffany & Co. (TIF) have a 1.73% dividend yield, based on last night’s closing stock price of $66.94. The stock has technical support in the $57-$60 price area. If the shares can firm up, we see overhead resistance around the $70-$72 price levels.
Tiffany & Co. (TIF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.