Tiffany posts disappointed sales, improved profits

Tiffany posts disappointed sales, improved profits

Luxury jewelry maker Tiffany & Co. has reported better than expected profits for the last quarter. However, they failed to impress the market with less than expected revenue figures. The company did great in the Japanese market but lost out on the initiatives in their primary market of United States.

In addition, Tiffany’s first-quarter outlook also disappointed investors and the market analysts believe that the higher silver and gold prices could hurt margins going forward. All these factors resulted in company’s share taking a beating in the stock market as they fell down by as much as 4 percent before paring losses in later trading.

Tiffany earned 87 cents a share, which was around 3 cents higher than what the market had expected. However, sales were just around $858.45 million, which was disappointing when compared to average analysts’ estimates of $871.16 million.

Mark Aaron, the company’s vice president of investor relations said in a statement: “The flagship store’s performance was affected by lower foreign tourist spending in the fourth quarter, which more than offset higher sales to local resident customers.”