-=Tiffany & Co (TIF) reported earnings Wed 25 May 2016 (b/o)

Tiffany & Co misses by $0.04, misses on revs; guides Q2 EPS below consensus; reaffirms FY17 EPS guidance, lowers FY17 revs below consensus  :

• Reports Q1 (Apr) earnings of $0.64 per share, excluding $0.05 tax benefit, $0.04 worse thanthe Capital IQ Consensus of $0.68; revenues fell 7.4% year/year to $891.3 mln vs the $914.97 mln Capital IQ Consensus. 
• Comparable store sales declined 9% vs. ests near -5%. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales declined 7%, and comparable store sales declined 9%.
  • Americas sales -9%; comps -10% -- management attributing the declines to varying degrees of softness in spending by U.S. customers and foreign tourists.
  • Asia Pac sales -8%; comps -15%. Japan +8%; comps +12%. Europe -9%; comps -15%.
• Co issues downside guidance for Q2, sees EPS similar rate YoY to Q1 (down ~15% from $0.85) vs. $0.79 Capital IQ Consensus Estimate.
• Co issues guidance for FY17, reaffirms mid single digit EPS decline vs. -2% consensus to $3.75; lowers FY17 revs to low single digit decline from $4.1 bln last year (previously near last year's level) vs. $4.1 bln Capital IQ Consensus; worldwide gross retail square footage increasing 2%, net through 11 openings, 6 relocations and 10 closings; (iii) operating margin below the prior year's 19.7% (excluding the prior year's charges due to an expected increase in gross margin more than offset by SG&A expense growth; a modest year-over-year strengthening of the U.S. dollar; net inventories unchanged from the prior year.  
• "As expected, this was a difficult quarter in terms of both sales and earnings growth. We faced numerous challenges, including continued pressure from foreign tourist spending in Europe, the U.S. and Asia, particularly in Hong Kong. However, we are continuing to take actions that are intended to strengthen sales growth with local customers in the U.S. and around the world. From a strategic perspective, we believe that our initiatives will enhance our ability to provide our customers with extraordinary products and experiences and ultimately contribute to improved financial results. We remain focused on generating sustainable long-term sales and earnings growth."