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Tiffany’s Declining 2Q Sales Miss Estimates
Aug 25, 2016 8:55 AM
By Rapaport News
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RAPAPORT... Tiffany & Co.’s revenue fell in the fiscal second quarter amid a challenging global environment that hit consumer spending in the company’s key markets.
Comparable store sales dropped 8 percent over the three months that ended July 31, missing analyst expectations. Deutsche Bank projected a 7 percent decline ahead of today’s results, noting they were in line with the Bloomberg consensus.
“The global environment continues to reflect well-known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists, especially from China,” said Frederic Cumenal, Tiffany’s CEO.
Group sales slid 6 percent to $932 million, with steep declines recorded in the U.S., Asia Pacific and Europe. Management noted lower spending among foreign tourists in all markets and in particular pointed to weakness in Hong Kong.
Net earnings rose 1 percent to $106 million as the company cut costs, including marketing expenses to offset the slump in sales. Tiffany maintained its outlook for revenue to slip by low-single-digit percentage in the full 2016 fiscal year.
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Tags:
diamond jewelry, diamonds, Jewelry, Rapaport News, Tiffany & CO.
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