Tiffany trims outlook as U.S. same-store sales fall

(Recasts with CEO quote, outlook excluding items, sales details, share price)

NEW YORK, Jan 11 (Reuters) - Tiffany & Co (TIF.N) cut the top end of its fiscal-year profit outlook on Friday as U.S. same-store sales fell 2 percent during the November-December holiday period, a sign that shaky consumer spending is taking its toll on the luxury sector.

The company, whose shares fell more than 13 percent, also said it was analyzing sales and earnings expectations for its next fiscal year, given lackluster demand at U.S. stores and uncertain consumer spending.

"We believe a recent pullback in U.S. spending likely reflected a more cautious attitude among customers about the near-term direction of the economy and related factors," Tiffany Chief Executive Michael Kowalski said in a statement.

Tiffany now expects earnings of $2.25 to $2.28 per share, excluding certain items, for the year ending on Jan. 31. In November, it had forecast profit of $2.25 to $2.30. Both outlooks exclude a gain from the sale of the Tokyo flagship store and charges for a contribution to the Tiffany & Co. foundation and a recent deal with Swatch Group (UHRN.S) (UHR.VX) to develop Tiffany-branded watches.

Tiffany also reduced its full-year sales growth forecast to 14 percent from 15 percent.

Total U.S. retail sales increased 4 percent to $449.1 million as fewer people made purchases, while those who did spent more.

At the flagship store in Manhattan's Fifth Avenue, sales rose 10 percent, driven by tourists.

International same-store sales rose 5 percent on a constant-currency basis, while total sales rose 12 percent to $334.8 million.

Total sales for the November-December period rose 8 percent to $867.3 million, helped by sales growth in silver and engagement jewelry.

Tiffany shares were down $5.40, or 13.4 percent, at $34.92 in morning New York Stock Exchange trade. Earlier, the stock fell to $34.65, its lowest level since October 2006.

(Reporting by Aarthi Sivaraman; Editing by Lisa Von Ahn)

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