J Crew And Tiffany’s Reports Echo Familiar Theme: Weak US, Strong International


Retailer J Crew (JCG), which has 267 stores all in the US, reduced guidance for 2008 in an otherwise strong 1st quarter earnings report yesterday after the close.  They took down full year EPS forecasts from $1.85-$1.87 to $1.70-$1.75 and forecast flat to low single digit same store sales growth (JCG Earnings Release).

Shares were crushed, down 20% on huge volume: about 25% of the company’s outstanding shares traded hands today.

Tiffany’s (TIF), on the other hand, saw its shares rise on strong international sales despite a weak US.  US same store sales were flat but that masks a 16% increase at its flagship New York store, which benefitted from foreign tourist spending, versus a 4% decline at the rest of its US branches

Same store sales were up 4% in Asia and 12% in Europe in constant currency terms.  Based on this international strength, Tiffany’s was able to raise its full year EPS guidance range by a nickel (TIF Earnings Release).

Tiffany shares were up 3% on moderate volume.

Disclosure: Top Gun has no position in J Crew (JCG) or Tiffany’s (TIF) shares.

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