Tiffany & Co. Holiday Sales ‘Negatively Affected by Restrained Consumer Spending’‎

The company said that comparable store sales, which declined 5 percent in the period, were according to CEO Frederic Cumenal, adversely affected due to the combined effects of a strong US dollar and weak tourist spending in a number of markets.

In the Americas, total sales on a constant-exchange-rate and comparable store sales declined 5 percent and 8 percent respectively. In US dollars, total sales declined 7 percent to $505 million.

Total sales in the Asia-Pacific region on a constant-exchange-rate basis fell 6 percent and comparable store sales dropped 9 percent. Total sales of $187 million represented an 11-percent decline on the prior year, exacerbated by weakness in Hong Kong and Singapore.

In Japan, total sales on a constant-exchange-rate basis rose 12 percent and comparable store sales increased 10 percent. In US dollars, total sales improved 9 percent to $123 million.

Total sales in Europe on a constant-exchange-rate basis increased 4 percent, but comparable store sales declined 2 percent. In US dollars, total sales decreased 4 percent to $128 million.

Tiffany’s management expect that net earnings in the year ending January 31 will decline 10 percent – the upper limit of its previously forecast 5 percent to 10 percent. The company also said that due to the strong dollar and global macro challenges there will likely be minimal growth in net sales and net earnings in 2016.

“We believe overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions and we expect 2015 earnings to come in at the low end of our previously-set range of expectations,” said Cumenal.

“Nonetheless, we were pleased with initial sales of our new fashion and fine jewelry designs, a solid increase in worldwide e-commerce sales and our ability to maintain gross margin at normal levels.”

Tiffany operates 307 stores worldwide, an increase from 296 a year previously.