Tiffany & Co. (NYSE: TIF) on Friday reported its fourth-quarter revenue and earnings topped analysts’ estimates. But the company forecasted full-year profit that fell short of analysts’ estimates, sending its stock down more than 4 percent.
The jewelry company said worldwide net sales rose 9 percent to $1.3 billion in the fourth quarter, beating analysts’ estimates by $20 million.
Net income was $61.9 million, or 50 cents per share, in the quarter ended January 31, 2018, compared with $157.8 million, or $1.26 per share a year earlier.
Excluding certain items, the company earned $1,67 per share, topping analysts’ estimates of $1.64 per share, according to Thomson Reuters.
Alessandro Bogliolo, Chief Executive Officer, said, “We are pleased to be finishing the year with solid sales growth, both geographically and across product categories. Most important, however, is to generate sustainable growth in sales, margins and earnings over the long-term. Confirming what we recently indicated, we believe that increasing investment now in certain areas, such as technology, marketing communications, visual merchandising, digital and store presentations, which we expect will hinder pre-tax earnings growth in the near-term, is needed to generate that lasting long-term growth.
Same-store sales, a key metric for retailer, rose 1 percent in the fourth quarter.
The company now forecasted full-year profit between $4.25 and $4.45 per share, below analysts’ estimate of $4.37 per share.