Tiffany & Co.(NYSE: TIF) stock lost over 1.4% on August 24th, 2017 (as of 1:10PM EDT; Source: Google finance) on concerns over their comparable store sales which fell 2%. Overall, worldwide net sales rose 3% to $960 million, drive by wholesale sales of diamonds, wholesale sales in the Asia-Pacific region and solid e-commerce sales growth. Better fashion and designer jewelry sales offset weakness in other jewelry categories. Net earnings enhanced 9% to $115 million, or $0.92 per diluted share, as compared to $106 million, or $0.84 per diluted share in the prior corresponding period.
Net sales in Americas, surged 1% yoy to $439 million during the quarter while comparable store sales fell 1%. Decrease in spending by foreign tourists hurt the performance. As per the Asia-Pacific region, overall sales reached $235 million in the quarter while comparable store sales fell 7%. Despite better performance in mainland China, tough conditions in other countries, contributed to the performance. Japan sales rose 1% yoy to $140 million during the quarter while comparable store sales rose 3%. Europe, sales increased 3% yoy to $114 million during the quarter driven by wholesale sales and the effect of new stores. Tiffany has opened three Company-operated stores during the first half of the year and closed four. Tiffany operated 312 stores with 124 in the Americas, 85 in Asia-Pacific, 54 in Japan, 44 in Europe, and five in the UAE).
For fiscal year of 2017, Tiffany expects their net sales to rise by a low-single-digit percentage on a constant-exchange-rate basis, while net earnings per diluted share is forecasted to rise by a high-single-digit percentage. Overall gross retail square footage rose 2%, while operating margin is expected to be in line with the prior year. The group expects their net cash provided by operating activities of over $700 million while free cash flow would be over $450 million.
Tiffany stock rallied over 12.5% in this year to date (as of August 24th, 2017; Source: Google finance) while has a 17.1% upside as per four analyst consensus target price of $101.25.