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Tiffany Cuts Earnings Forecast as 1Q Sales Fall
May 26, 2016 9:21 AM
By Rapaport News
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RAPAPORT... Tiffany & Co. reported a drop in quarterly revenue and
profit, while lowering its earnings guidance, because of a decline in spending
by U.S. customers and foreign tourists. 
Sales fell 7.4 percent to $891.3 million and profit
slumped 17 percent to $87.5 million in the first fiscal quarter that ended April
30, the New York-based jeweler reported.
The company narrowed its outlook for 2016, predicting a
mid-single-digit percentage drop in full-year earnings per diluted share. It
had previously issued a forecast that ranged from unchanged to a
mid-single-digit percentage drop.
“As expected, this was a difficult quarter in terms of both
sales and earnings growth,” said Frederic Cumenal (pictured), Tiffany’s chief executive
officer.
“We faced numerous challenges, including continued pressure
from foreign tourist spending in Europe, the U.S. and Asia, particularly in
Hong Kong. However, we are continuing to take actions that are intended to
strengthen sales growth with local customers in the U.S. and around the world.”
Sales in the Americas and Europe were both 9 percent lower.
Asia-Pacific revenue fell 8 percent.
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Tags:
Jewelry, new york, Rapaport News, retail, Tiffany, Tiffany & CO., u.s.
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