The New York Times Business Business Special Tiffany Earnings Dropped Sharply in Third Quarter

y The Associated Press

The results were well below Wall Street expectations, and Tiffany lowered its earnings outlook.

The company predicted earnings growth of 5 percent to 10 percent in the fourth quarter from a year ago, indicating that earnings per share will be 78 cents to 81 cents.

Net sales increased 7 percent, to $461.2 million, compared with $430.1 million in the year-ago period. Sales at stores open at least a year were up 3 percent. On a constant exchange-rate basis that excludes the effect of currency conversions, net sales increased 5 percent and same-store sales increased 1 percent.

Tiffany also lowered its full-year earnings forecast to $1.43 to $1.48 a share, from $1.55 to $1.60.

Tiffany earned $20.81 million, or 14 cents a share, for the three months ended Oct. 31, compared with $28.03 million, or 19 cents a share, in the period a year earlier. Analysts surveyed by Thomson First Call expected 19 cents a share.

The company's stock fell $1.84, or 5.7 percent, to close at $30.29 on the New York Stock Exchange.

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International retail sales rose 10 percent, to $190.85 million, while same-store sales increased 3 percent. In Japan, retail sales declined 2 percent.

The jewelry retailer Tiffany & Company said yesterday that its third-quarter earnings fell sharply, dragged down by weaker-than-expected sales in Japan and higher costs for precious metals and diamonds.

The company reported retail sales at United States stores of $216.5 million, up 7 percent. Same-store sales were up 4 percent.

Analysts surveyed by Thomson First Call expected 84 cents.

*** co sale,,Get an inside look at the latest fashion trends   NYTimes: Home - Site Index - Archive - Help Welcome, - Member Center - Log Out Advertisement Tiffany Earnings Dropped Sharply in Third Quarter By ASSOCIATED PRESS Published: November 12, 2004

Michael J. Kowalski, the chairman and chief executive, said in a statement that he expected gross margins in the fourth quarter to be somewhat lower than in the prior year because of factors like higher metal and diamond costs.