Tiffany & Co. said fiscal third- quarter earnings fell 34 percent as sales declined and fourth quarter profit will at least meet analysts’ estimates.
Net income in the quarter ended Oct. 31 fell to $24 million, or 16 cents a share, from $36.3 million, or 24 cents, a year earlier. Sales fell 10 percent to $333.1 million, Tiffany said in a statement. Earnings beat the 13-cent reduced average estimate of analysts polled by Thomson Financial/First Call.
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Demand for diamond rings and gifts slipped as shoppers worried about the slowing U.S. economy, layoffs and safety concerns after the Sept. 11 terrorist attacks. Tiffany said U.S. same-store sales fell 19 percent, as fewer people visited its stores and customers reduced the average amount they spent. The chain said it was managing costs and inventory as sales slowed.
“The question is, what is the economy going to do,” said Brian James, portfolio manager of Loomis Sayles & Co., which holds retail shares such as Federated Department Stores Inc. He doesn’t hold Tiffany shares.
Tiffany said it still expects fourth-quarter profit will be 49 cents to 56 cents, compared with 56 cents a year ago. Analysts’ estimates range from 44 cents to 54 cents, according to First Call.
