TIFFANY SHARES LOSE THEIR LUSTRE

Tiffany, the world's second-largest jewelry retailer, reduced its profit forecast Jan. 11 after same-store sales declined 2 percent. The New York-based retailer, known for its robin's-egg-blue gift boxes, said it may consider lowering 2008 targets.

Internet holiday spending climbed 19 percent in 2007, the slowest growth on record, Reston, Virginia-based ComScore Inc. said on Jan. 7. The results for November and December trailed its forecast of a 20 percent gain compared with a 26 percent gain a year earlier.
Wal-Mart, Costco Wholesale Corp., the largest U.S. warehouse-club chain, and retailers that sell food and essential clothing will fare best in 2008, Davidowitz said.
'They are selling things that you have to have versus things you want to have,'' Davidowitz said.
Tiffany’s shiny quarter didn’t satisfy investors who pulled down shares of the luxury retailer.

By early-afternoon Friday, shares of the New York-based company were down 2.4%, or $1.16 cents, to $47.59.
For the third quarter, which ended on Oct. 31, Tiffany & Co. (nyse: TIF - news - people )’s sales increased 18.0% to $627.3 million from the $531.8 million reported during last year’s corresponding period.
Based on generally accepted accounting principals, earnings rose 239.9% to $98.9 million, or 71 cents per share, from $29.1 million, or 21 cents per share, posted last year.
Although impressive at first glace, Tiffany’s results include the sale-leaseback of its flagship store in Tokyo, which contributed 48 cents to the per share total. When excluding charges and gains, the company’s earnings were 27 cents per share.