Executive Summary

• Tiffany & Company reported 2Q16 adjusted EPS of $0.84 versus the consensus estimate of $0.72.
• Total revenue was $931.6 million versus expectations of $932.7 million. Comps were down 9% on a global basis, driven by a 9% decline in the Americas, a 9% decline in the Asia-Pacific region, a 3% decline in Japan and a 13% decline in Europe. Other comps were down 22%, driven by lower sales in the UAE and an increase in wholesale diamonds. Management attributed the declines in sales to both local customers and foreign tourists in most regions.
• Management reiterated its prior guidance. EPS for the full year is expected to decline by a mid-single-digit percentage from last year’s $3.83. Sales are expected to decline by a low-single-digit rate year over year.