Please ensure Javascript is enabled for purposes of website accessibility

Instant Analysis: Tiffany Whiffs on Q1 Revenue, but Raises Dividend

By Eric Volkman - May 27, 2016 at 2:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The luxury jeweler's latest quarterly results weren't so luxurious.

High-end jeweler Tiffany (TIF) isn't quite the jewel of the stock market this week, following the release of its first-quarter results.

For the period, the company's net sales fell by 7% on a year-over-year basis to $891 million. Net profit declined more steeply, by 17% to $87 million, or $0.69 per share.

Image source: Tiffany.  

On average, analysts believed Tiffany would post a top line of $915 million, and EPS of $0.68.

The company also updated its full-year guidance. It now anticipates that EPS will fall at a mid-single-digit percentage rate from 2015's result.

In spite of the Q1 declines, the company elected to raise its quarterly dividend. It will pay $0.45 per share, an improvement of 12.5% over its predecessor. This is to be handed out on July 11 to shareholders of record as of June 20.

Does it matter?

Tiffany's shares slid, although not too drastically, on the news of the disappointing quarter. This is likely because the company has been struggling for some time, and a weak quarter was hardly unexpected.

A persistently strong dollar is a key culprit in the top- and bottom-line slides; a powerful greenback results in fewer dollars when customers pay in local currency. At the end of Q1, most of Tiffany's 308 stores were located abroad. Compounding that was enduring economic sluggishness in Europe and a slowdown in China.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tiffany & Co. Stock Quote
Tiffany & Co.
TIF

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.