Tiffany (NYSE: TIF) reported today that it planned to cut its 2012 guidance, as weak holiday sales and restrained spending by consumers threatened the company's current outlook. The company estimated that EPS would come in at $3.60-3.65 vs. a previous forecast of $3.70-3.80. North American sales rose 4% to $503 million while comparable sales jumped 2%. “We are in the preliminary stages of financial planning for 2012 and will provide more detailed guidance when we report our full year financial results in March,” stated CEO Michael Kowalski. “We remain confident of our ability to expand our worldwide presence, to serve the global demand for Tiffany products and to achieve a solid rate of annual growth in sales and earnings in 2012 despite economic challenges.”

Tiffany has posted very strong numbers over the past year, as customers have returned to the market after holding back during the recession. However, many of the company's sales come from Europe and could be hampered given the country's economic uncertainties. According to a Bloomberg report, no U.S. retailer has more European exposure. The company also has a great deal of Asian exposure, could negatively affect Tiffany given the slowing of Chinese growth. “You are seeing more volatility in the financial markets,” stated Stifel & Nicolaus analyst David Schick. “It's not confidence inspiring for bigger ticket spending. That tells you not to expect too much in the top line for Tiffany.”