Tiffany’s holiday sales fall, weak conditions remain
Posted Jan 19, 2016 07:37:38 AM.
Last Updated Jan 19, 2016 02:00:09 PM.
This article is more than 5 years old.
NEW YORK, N.Y. – Tiffany reported a worldwide decline in jewelry sales during the holiday period as consumer spending remained tepid in an uncertain global economy.
The company reported a 9 per cent drop in global same-store sales, or sales at stores open at least a year. Every region experienced a decline, except for Japan.
Its shares tumbled almost 6 per cent in morning trading.
“We believe overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions,” said CEO Frederic Cumenal, in a statement.
Same-store sales fell 10 per cent in the company’s America’s region, mainly on lower tourist spending in New York and other markets. The Asia-Pacific region saw a 14 per cent drop and Europe experienced a 10 per cent drop.
Concern over global economic growth has been heightened as China’s growth slows down. China’s growth has been falling steadily, hitting a quarter-century low in 2015.
Looking ahead, Tiffany expects full-year profit for 2015 to decline by 10 per cent, closer to its worst-case outlook for the year. It expects minimal growth in 2016.
Shares of Tiffany & Co. dropped $2.2.24, or 3.3 per cent, to $65.41 in afternoon trading Tuesday. Its shares are down more than 26 per cent over the past year.
