Tiffany & Co reported lower-than-expected quarterly sales as the famous jeweller struggles with weak demand.
Associated with all things expensive and high-class, the iconic jeweller has had a hit as the company’s shares fell 5.6 percent to USD$87.96 reported from last week.
The fall in sales has been attributed to a strong dollar in the US market that has influenced tourist spending.
Comparable-store sales in the Americas, which account for nearly half of Tiffany’s total revenue, fell four percent, while the company posted a three percent decline in the Asia-Pacific region in the first quarter.
Analysts polled by Consensus Metrix expected a 0.5 percent drop in the Americas and a growth of 1.3 percent in the Asia-Pacific region in the first quarter ended April 30.
Tiffany prices range from $600 to several million.
Tiffany, whose one-of-a-kind pieces are a regular feature on Hollywood red carpets, has also been struggling to attract young shoppers, who tend to prefer cheaper, chic brands.
Numbers of its nine Australian stores and its one New Zealand flagship location were not included in the report, but can be categorised within their ‘Asia-Pasific’ region, of which fell three percent in the first quater.
The New Zealand store was opened only last year, in late October. The 430 square metre store slotted in well with Auckland’s growing luxury precinct.
The company had spent seven years looking for the right Auckland location. In total, Tiffany has 311 stores operating in 27 countries.
Net sales rose marginally to USD$899.6 million in the first quarter, but missed analysts’ average estimate of USD$913.71 million.
Net income increased to USD$92.9 million, or 74 cents per share, from USD$87.5 million, or 69 cents per share, a year earlier.