Shares of Tiffany & Co (TIF) dropped in morning trading after the luxury goods retailer reported a 4% decline in holiday-period same-store sales in the Americas, noting that sales at its flagship store on Fifth Avenue in New York were hurt by "post-election traffic disruptions," and that it does not see a significant improvement in economic conditions this year.

HOLIDAY SALES RESULTS: Tiffany & Co said this morning that sales during the critical two month period ended December 31 were "somewhat lower" than it expected, hurt by lower customer spending and a decline at the company's flagship store on Fifth Avenue in New York. Worldwide net sales for the period were $966M, slightly above the $961M reported a year ago, while worldwide comparable store sales declined 2% as sales growth in Asia-Pacific and Japan was largely offset by lower sales in the Americas and Europe. The luxury retailer said net sales and comparable sales in the Americas fell 4%, with sales at its flagship store on Fifth Avenue dropping 14%, which the company attributed "at least partly" to post-election traffic disruptions. In November, Tiffany said there had been "some adverse effect" on traffic at its flagship store in New York following the U.S. presidential election and noted "sales softness" compared with a year ago and to the company's others U.S. stores. At the time, Tiffany said it could not "provide any assurance that sales in that store will not be negatively affected by this activity in the fourth quarter or in any future period."

FY16 OUTLOOK: Looking ahead, Tiffany said it expects fiscal 2016 adjusted earnings per share to be down "by no more than a mid-single-digit percentage," and continues to expect worldwide net sales declining by a low single-digit percentage from the prior year. The company said it does not anticipate a significant improvement in economic conditions in 2017.

CHIEF ARTISTIC OFFICER APPOINTMENT: Separately, Tiffany this morning named Reed Krakoff to the newly created position of chief artistic officer. Krakoff will direct design for Tiffany & Co brand jewelry, as well as luxury accessories. He formerly served as president and executive creative director of Coach (COH), and previously worked for Ralph Lauren (RL).

WHAT'S NOTABLE: Several retailers, including Macy's (M) and Kohl's (KSS), as well as Signet Jewelers (SIG), have reported weaker-than-expected holiday sales as consumers shift to fast-fashion retailers like Zara, Forever 21 and H&M, as well as an increase in online shopping.

PRICE ACTION: Tiffany & Co is down 1.8% to $80.42 in morning trading, though shares remain up about 12% over the last three months.

OTHERS TO WATCH: Tiffany peer Signet is up about 2.5% this morning, while Blue Nile (NILE) is relatively flat.