FILE - In this Aug. 27, 2010 file photo, a man walks into a Tiffany store on Wall Street in New York. Tiffany & Co. cut its outlook for both sales and profit for the year, citing a slowdown in demand for its jewelry not only in the U.S. but in many other countries. (AP Photo/Mark Lennihan, File)
FILE - In this Aug. 27, 2010 file photo, a man walks into a Tiffany store on Wall Street in New York. Tiffany & Co. cut its outlook for both sales and profit for the year, citing a slowdown in demand for its jewelry not only in the U.S. but in many other countries. (AP Photo/Mark Lennihan, File)
NEW YORK (AP) ? Tiffany & Co. cut its outlook for both sales and profit for the year, citing a slowdown in demand for its jewelry not only in the U.S. but in many other countries.
The lowered outlook delivered Thursday came as the luxury chain reported that its profit for the first quarter was essentially the same as a year ago, hurt by business at home.
Investors were spooked, driving shares more than 9 percent lower in late morning trading.
The affluent have picked up spending since the Great Recession ended in mid-2009, recovering faster than other segments. But since late last year, Tiffany has seen a slowdown in spending among its U.S. customers as the stock market has weakened and worries have intensified about the debt crisis in Europe.
The latest report indicates conditions have worsened here as well as outside the U.S.
Tiffany reported net income of $81.5 million, or 64 cents per share, in the quarter ended April 30. That compares with $81.1 million, or 63 cents per share, a year ago.
Worldwide revenue rose almost 8 percent to $819.2 million. Revenue at stores open at least a year rose 4 percent. The measure is an indicator of a retailer's health.
Analysts had expected earnings of 69 cents per share on revenue of $817.1 million.
Tiffany said during its earnings call that it's seeing restrained spending by people employed in the financial industry, normally key customers for jewelry. It noted rivals have increased discounting. And it said price increases driven by higher silver costs may have scared off some entry-level buyers.
Tiffany said that sales in the Americas region, which include the U.S., Canada and Latin America, rose 3 percent to $386 million. Revenue at stores open at least a year was unchanged from a year ago but that key metric fell 4 percent at Tiffany's flagship New York store.
Tiffany said tourist spending in the New York store was about the same as a year ago, as more spending by Asian tourists offset lower business from visitors from other regions.
Sales in Europe rose 3 percent overall to $88 million but revenue at stores open at least a year there fell 4 percent.
Total sales in the Asia-Pacific region rose 17 percent to $195 million as revenue at stores open at least a year there increased 11 percent.
In Japan, Tiffany posted a 15 percent increase in sales to $142 million on the same percent rise in revenue at stores open at least a year.
Tiffany said that it now expects earnings per share to be in the range of $3.70 per share to $3.80 per share for the year. It had originally expected $3.95 per share to $4.05 per share.
Analysts expected of $3.98 per share, according to FactSet.
Tiffany also expects worldwide sales to be up 7 percent to 8 percent, instead of the 10 percent originally projected.
The company said that the lowered outlook won't affect expansion plans this year. The company plans 24 stores this year, including stores in Manhattan's SoHo area and in Singapore's Changi Airport.
Its shares fell $5.82, or 9.4 percent, to $55.98 in late morning trading. Its shares have fallen 23 percent in the past two months and are down 34 percent from their 52-week high of $84.49 last July.
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