Tiffany cuts earnings forecast after holiday sales decline

TIFFANY & CO. cut its full-year profit forecast after reporting a drop in holiday sales, dragged down by sluggish tourist spending and a strong dollar. / BLOOMBERG NEWS FILE/DAVID PAUL MORRIS
TIFFANY & CO. cut its full-year profit forecast after reporting a drop in holiday sales, dragged down by sluggish tourist spending and a strong dollar. / BLOOMBERG NEWS FILE/DAVID PAUL MORRIS

NEW YORK – Tiffany & Co. cut its full-year profit forecast after reporting a drop in holiday sales, dragged down by sluggish tourist spending and a strong dollar.
Net earnings in the year ending this month will decline about 10 percent, the New York-based jeweler said in a statement Tuesday. It previously predicted a drop of 5 percent to 10 percent.
The results renewed concerns that the shaky global economy is taking a toll on luxury retailers like Tiffany. The company’s stores in New York and other U.S. cities saw weaker spending from foreign visitors, and the dollar’s gains eroded Tiffany’s sales overseas. Markets like Hong Kong and Singapore also suffered “significant weakness” during the holidays, the company said.
“Overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions,” CEO Frederic Cumenal said in the statement.
Globally, net sales fell 6 percent to $961 million during the holiday period, which includes November and December. The company expects the difficulties to continue in the coming year, resulting in minimal growth in net sales and net earnings.
The stock fell as much as 4.4 percent to $64.70 in early trading after the results were released. Tiffany’s shares are coming off a 29 percent decline in 2015.

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