Tourists hurt by the strong dollar spent less at its U.S. stores. Existing store sales fell in every region around the world, except Japan. Fred Katayama reports.
The strong dollar took away the sparkle at Tiffany. Tourists - especially Chinese tourists - spent less at its U.S. stores, and American customers didn't buy as much, either. That led to profit and sales dropping in the latest quarter. And sales at its existing stores fell in every region around the world, except Japan. Tiffany doesn't see things getting much better soon. It warned that adjusted profit in the current quarter could fall by up to twenty percent and by up to ten percent in the second quarter. It says, it'll be further impacted by the strengthening dollar and uncertainty over the economy and the stock market. Investors looked farther ahead. Tiffany shares - down eight percent this year - didn't move much in early trading. Jefferies analyst, Randal Konik, was upbeat, saying, "We see the top line recovering as foreign exchange and tourism headwinds abate." Tiffany says it sees growth resuming in the second half.