Tiffany & Co. (NYSE:TIF) Tuesday posted better-than-expected third quarter results and maintained its full-year sales and earnings guidance even though it said protest and security around Trump Tower had hurt traffic at its flagship in New York.
The shop is located on Fifth Avenue and next door is Trump Tower, the residence and office tower of President-elect Donald Trump. Since the election, security was heightened in front of Trump Tower. What’s more, more and more protests were happening there too. Tiffany’s executive said the company is “adverse effect” on its Fifth Avenue flagship, which accounts for less than 10 percent of its total sales.
“The company cannot provide any assurance that sales in that store will not be negatively affected by this activity in the fourth quarter or in any future period,” the jeweler said. Although analysts are cautious about the effect, the company still maintain its full-year guidance, seeing revenue to slip by a low-single-digit percentage for fiscal 2016 while earnings per share to fall in a mid-single-digit percentage range.
For the third quarter, the iconic jewelry seller said net income were $95.1 million, or 76 cents a share, compared with $91 million, or 70 cents a share, a year earlier. Analysts had projected net income of 67 cents a share. Sales rose 1.2 percent to $949.3 million, beating analysts’ estimate of $923.7 million.
“The 1 percent uplift is modest, but it is far better than the string of poor numbers the company has been posting for well over a year,” Conlumino analyst Neil Saunders said. “That said, the figures do not show that all the problems at Tiffany have been resolved.”