UPDATE: Tiffany Misses on Top and Bottom; Down 3.5%

Shares of Tiffany & Co. (NYSE: TIF) are trading sharply lower 3.5 percent to $89.39 after the company reported disappointing fourth quarter results, missing on both the top and bottom line, and a $300 million stock repurchase program.

On a GAAP basis, Tiffany's reported a loss of $0.81. The net loss was due to a recorded charge that related to a ruling in an arbitration proceeding. The company reported an adjusted earnings per share of $1.47 versus $1.52 analyst estimates

Tiffany's and revenue of $1.30 billion versus $1.31 billion estimate. Revenue was up five percent for the quarter and six percent for the year. Same-store sales finished up six percent.

2014 guidance came in light at $4.05-$4.15 EPS versus $4.28 analyst estimates.

The company plans to add 13 stores and close four existing stores in 2014.

The company also announced a stock buyback program of up to $300 million over the next three years.

Chief Executive Officer Michael Kowalski is “proud” of Tiffany's 2014 performance and said, “sales growth was led by fine and statement jewelry.”