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.