Tiffany (TIF, $102.90) drops -5% pre-market, on lacklustre revenue in holiday season

Tiffany stock lost nearly -5% in pre-market Friday, after the luxury jewelry company reported tepid holiday sales.

The company’s fiscal fourth-quarter net revenue came in at $1.321 billion, missing analysts’ expectation of $1.332 billion (based on Refinitiv survey). Less spending by Chinese tourists and economic sluggishness in Europe were factors that Tiffany had anticipated would pose headwinds to holiday season revenue.

During the fourth quarter, Tiffany’s net sales in the Americas were flat compared with the year-ago quarter. They were down -1% in Asia-Pacific, up +3% in  Japan, and declined -3% in Europe.

For fiscal full-year 2019, Tiffany expects its global net sales to increase by a low-single-digit percentage, with lower tourism spending to probably depress net earnings during the first half of the year. Analysts had predicted revenue to increase +6.9% for the year.

“I continue to strongly believe that Tiffany has vast global growth opportunities and we look forward to realizing our full potential in the future,” CEO Alessandro Bogliolo said on Friday.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.