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HomeNEWSTiffany & Co drop in sale expectations

Tiffany & Co drop in sale expectations

Tiffany & Co reported lower-than-expected quarterly sales as the famous jeweller struggles with weak demand.

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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.

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The fall in sales has been attributed to a strong dollar in the US market that has influenced tourist spending.

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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.

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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.

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Tiffany prices range from $600 to several million. 

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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.

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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.

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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.

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The company had spent seven years looking for the right Auckland location. In total, Tiffany has 311 stores operating in 27 countries.

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Net sales rose marginally to USD$899.6 million in the first quarter, but missed analysts’ average estimate of USD$913.71 million.

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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.

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