Tiffany's Is Tanking

REUTERS/Arnd Wiegmann

Tiffany & Co. is doing even worse than they expected.

Worldwide net sales during the holiday season fell 1%.

The luxury jeweler is now expects Full year earnings per share in a range of $4.15 to $4.20, down from its previous outlook of $4.20 to $4.30. 

Analysts were expecting earnings per share to increase to $4.32.

Shares are down 6% in pre-market trading.

"Clearly, sales for the holiday period were disappointing overall, with significant variability in performance by region and by product category," CEO Michael Kowalski said.

Sales were down in the US by 1% and Japan by 8% - which is pretty bad news for the company that prides itself on luxury gifts and engagement rings.

However, sales were up in Europe by 4% and in the Asia-Pacific by 6%. 

The luxury jeweler sees earnings up "low-to-mid single digits" for 2015 and 2016.

Tiffany's is trying to innovate following the poor holiday season. A few days ago, the jeweler unveiled a new ad featuring a gay couple in its latest engagement campaign, which has received praise from both the fashion media and even several celebrities.