Tiffany Group expects earnings per share 4.25-4.45 billion in the current fiscal year, calculated at a median of 4.30 dollars, far below the market expected $4.42. The company also indicated that the increase of SG&A expense would also weaken the operating profit rate.
In addition, in the key holiday season up to January 3rd, the Tiffany Group recorded a 3% increase in the same store sales, a 1% increase in fixed exchange rate, although slightly better than the three quarter, but far less than the expected 2.8% growth rate.
Investors were obviously impatient with the US group in the transition period, especially in the backdrop of the luxury market. The punishing Tiffany group opened 4.41% dollars and 98.18 dollars on Friday, and then quickly dived to a 95 dollar decline of $7.51% at a full day low, but accompanied by a widespread rally in retail stocks and part of the investment bank. In the long term confidence, the stock price was supported, and it had a concussion near 97 dollars, and it finally closed at 97.51 dollars, down 5.06%.
Jefferies analyst Randal Konik said he remained confident about Tiffany, and the change in the new management was to take the necessary reform measures for the long-term growth of the group. Once the sales growth was regular, it would be reflected in the stock price. The bank maintains Tiffany’s 125 dollar target price and “buy” rating.