Tiffany reports fourth quarter 2018 earnings

Tiffany shares bounced back Friday morning after management touted growth opportunities for the retailer, despite the item reporting a 1 percent drop in sales worldwide during the holiday quarter, calling out “external challenges as well as uncertainties.”

Its stock initially fell. yet the item was last up more than 3 percent following Tiffany’s earnings Discharge, as its CEO soothed investors’ concerns during a conference call with analysts.

Tiffany earlier that will year had said sales during the holiday season fell unexpectedly as Chinese tourists spent less, as well as demand for its diamonds softened in Europe. The retailer has typically been reliant on Chinese shoppers to boost sales. yet uncertain as well as ongoing trade talks between the U.S. as well as China have been a looming threat for luxury retailers, like Tiffany, which have benefited via the region inside past.

“I continue to strongly believe that will Tiffany has vast global growth opportunities as well as we look forward to realizing our full potential inside future,” CEO Alessandro Bogliolo said on Friday. “What we are doing is actually to keep on working as well as investing on domestic customers,” or non-tourists, he said. as well as that will’s going over particularly well in China, according to Bogliolo.

The luxury jewelry retailer said net sales fell to $1.321 billion during its fiscal fourth quarter, while analysts had been expecting sales of $1.332 billion, according to a Refinitiv survey.

Tiffany reported net earnings of $204.5 million, or $1.67 a share, compared with $61.9 million, or 50 cents per share, a year ago. that will was slightly ahead of analysts’ expectations for earnings per share of $1.60.

Sales at Tiffany stores open for at least 12 months dipped 1 percent overall, while analysts had forecast growth of 0.8 percent.

During the fourth quarter, Tiffany said net sales inside Americas were flat compared having a year ago, in Asia-Pacific they were down 1 percent, in Japan they grew 3 percent, as well as in Europe they dropped 3 percent.

The company is actually expecting net sales worldwide to enhance by a low-single-digit percentage in fiscal 2019, with net earnings declining during the first half of the year, due to “sales pressures” via lower tourism spending. Analysts had been calling for revenue to be up 6.9 percent for the year.

“A lot is actually going to happen in 2019,” Bogliolo said. “Our strategy is actually to renew our product offerings at a faster pace,” he said, in addition to opening more stores in “key cities” like Washington, D.C.

One analyst believes the item will get easier for Tiffany, via here.

“While global demand headwinds have persisted via the second half of last year, we see expectations in equilibrium with reality at that will point, as well as compares ease as 2019 progresses,” Telsey Advisory Group analyst Dana Telsey said in a research note. “We continue to believe that will brand-new marketing initiatives, product innovation, as well as investments inside store as well as digital experience are showing indications that will a positive brand evolution remains underway.”

As of Thursday’s market close, Tiffany’s stock had rallied more than 24 percent so far that will year.