Halister News

(Bloomberg) -- Tiffany forecasts FY17 EPS down mid-single digits, saw down mid-single digits to unchanged in March, est. down 1% to $3.78.

• Shares drop 2.9% to $62 pre-mkt vs yesterday’s close $63.85
• Sees worldwide net sales down low-single digits
  • Still targets yr worldwide gross retail square footage growth 2% (net)
• Still expects yr op. margin below FY16’s 19.7% (excl. charges) due to SG&A expense growth exceeding sales growth
• Reaffirms yr FCF at least $400m, capex $260m
• Sees 2Q adj. EPS down similar rate as in 1Q, saw down 5%-10%, est. down 8% to 79c
• 1Q EPS ex-tax benefit 64c, with benefit 69c, est. 68c
  • 1Q gross margin 61.2% vs 59.1% y/y, est. 59.7%; effective tax rate 29% vs 34.7% y/y
• 1Q rev. down 7% to $891.3m, est. $915m (range $889m-$935m)
• 1Q systemwide comp. sales constant currency -9% vs est. -4.6% (Consensus Metrix, avg of 19)
• Regional ests. (in constant currency):
  • Americas -9%, est. -8.3%
  • Japan +5%, est. +10.2%
  • Asia-Pacific -12%, est. -7.2%
  • Europe -14%, est. -7.2%
• Net inventories at April 30 were 2% lower than prior year
• Says 1Q challenges included continued pressure from foreign tourist spending in Europe, U.S., Asia, particularly in Hong Kong
• NOTE: May 13, Newell Brands Appoints Tiffany’s Nicoletti as CFO
• Call 8:30am, 888-737-3628 pw 3632445
• See PREVIEW TIFFANY 1Q: Mgmt Shakeup, Weak Tourism May Hurt, BI Says

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